Google fell short of revenue estimates
Google fell short of revenue estimates and earnings for the third quarter, as the search engine increased its spending to revive slowing sales advertising.
Earnings, excluding some items, was $ 6.35 US dollars per share, the company said in a statement on Friday, a figure below the average analyst forecast of $ 6.53 US dollars.Revenue, excluding sales passed to partners, were $ 13.2 billion, just below analysts’ forecast, according to estimates compiled by Bloomberg.
Chief Executive Officer (CEO), Larry Page, is looking for new opportunities beyond search ads based on desk, is to increase investment in everything from business software to mobile services. Revenue from own websites Google grew 20% , compared with 23% in the previous period. At the same time, the company stepped up hiring and boosted research and development spending by nearly 50% .
“The trend lines are fine, but that is certainly slowing growth is slowing,” said Ben Schachter, an analyst at Macquarie Securities USA Inc. “They are spending a lot to get the talent they have. What needs to happen is that we will begin to see the results of Google in some non-traditional areas “ .
Shares of Mountain View, California-based Google fell 2.5% in extended trading. The action was reduced to less than 1% to $ 536.92 US dollars at the close in New York, leaving 4.3% this year.