Google Misses Q1 Earnings Estimates, Stock Drops More Than 5%

Sometimes $15 billion just isn't enough.

Google reported earnings of $6.27 per share on revenue of $15.42 billion for the first quarter, missing Wall Street estimates for earnings of $6.44 on revenue of $15.52 billion. Revenue excluding traffic acquisition costs for the quarter was $12.19 billion, coming in below analyst estimates for around $12.25 billion.

The number of paid clicks for Google ads increased by 26% year-over-year, but the average cost-per-click continued to decline 9% year-over-year as more ads are consumed on mobile.

Google stock had run up to above $1,200 a share at one point earlier this year, but the company finally split its stock in April, which brought the price of shares back down into the mid-$500 range Read more...