Fourth-quarter revenue of Google misses Wall Street target

Fourth-quarter revenue of Google misses Wall Street target

In the fourth quarter, the revenue of Google Inc. grew by 15%, still it was not able to meet the Wall Street's target in context of declining online ad prices and unfavorable foreign exchange rates. A direct effect of the announcement was visible in shares of the company. The shares of Google edged up 0.1% to $510.66 in extended trading after an initial dip on the news.

The advertising revenue of Google has come under pressure in the recent times as more consumers are now accessing its online services on mobile devices such as smartphones and tablets and the ad rates in these areas are typically lower.

Facebook Inc is the number one social network site and the growing popularity of mobile devices has made it the greater threat in the battle for advertisers. An example of it could be visible in the announcement made on Wednesday by Facebook where it reported that mobile ads on its network doubled year-over-year during the fourth quarter.

On Thursday, Google said the average price of its online ads or the "cost per click," decreased 3% year-over-year in the fourth quarter at the same time the number of consumer clicks on its ads has increased by 14%.

Speaking in this context, BGC Partners analyst Colin Gillis is one of the analysts who had hoped for gains in cost-per-click. He added that the company which gets about half of its revenue overseas was also hurt by the strong dollar.

Colin Gillis said, "Business is slowing. The core is slowing. And what we're saying is it's going to look on paper even worse as the dollar strengthens. And we are not at that point where mobile monetization is improving. The thesis is that the landscape is changing and Google is missing out".

User login

You May Have Missed...

NASA Invites Ideas for Manned Mission to Mars
Sun, 05/03/2015 - 10:24

NASA, with a goal to send a manned mission to Mars, somewhere in the 2030's, is working rigorously to devise methods of shielding the space...

Nigeria Update

Fresh Polio Cases lead to WHO Travel Restrictions on Pakistan and Syria
Tue, 05/06/2014 - 00:45

World Health Organization has slapped international travel restrictions on Pakistan, Cameroon...

Economy Watch

Federal Reserve officials not sure about Right Time to Increase Interest Rates
Thu, 02/19/2015 - 09:12

Federal Reserve officials held minutes of the January 27-28 meeting and it indicated that...

Health Tonight

Listeria-infested ice-cream poses health hazard
Wed, 04/29/2015 - 12:35

Owing to the possible contamination with Listeria, Jeni's Splendid Ice Creams announced that it...

Science Tonight

Volcano erupting off the Coast of Oregon, but poses No Threat
Sun, 05/03/2015 - 10:02

Seismologists have said that the Axial Seamount, a 1,100 meter high submarine volcano 300 miles...

UK News

Two medical workers to return for Ebola monitoring
Fri, 03/13/2015 - 14:07

Two military personnel, who were believed to be in close contact with a servicewoman diagnosed...


Astrazeneca’s Experimental Drug to Treat COPD Fails to Reduce Acute Exacerbation
Mon, 09/08/2014 - 13:17

On Monday, AstraZeneca PLC announced that Phase IIa study of benralizumab, an experimental drug...

US News

Series of Strange Lights spotted flashing over California
Sun, 05/03/2015 - 10:10

A series of bizarre lights that were spotted flashing in the sky of Southwest of San Diego on...

Technology Tonight

Alcatel One Touch Idol 3 --- an impressive low-cost, high-quality handset
Tue, 04/28/2015 - 13:25

Alcatel has recently announced the launch of its latest low-cost handset --- the high-quality...