Google shares dipped in after-hours trading Thursday after it reported quarterly earnings and revenue that fell short of analysts' estimates. Google's total number of ads, or its paid clicks, expanded by 17 percent year-over-year in the third quarter. That was down from the 25 percent growth rate that Google delivered in the second quarter. Google's online advertising rates, which have been in a multiyear decline, moderated slightly in the third quarter, declining 2 percent year-on-year, compared to the 6 percent decline posted in the second quarter. Shares fell as much as 6 percent before easing in after-hours trading.
Google generates most of its revenue from its desktop search and advertising business but has made major moves toward expanding its offerings. On Wednesday, the search giant a new Nexus phone and tablet as well as a new version of its mobile operating system, called Android 5.0 Lollipop.
IN-DEPTH
- Google Unveils Nexus 6 Smartphone and Nexus 9 Tablet
- OK, Google: Why Are Teens Totes More Into Voice Search Than Adults?
