(The Canadian Press) SAN FRANCISCO _ Google Inc.'s (
NASDAQ: GOOG, Stock Forum) financial performance faltered in the second quarter as a downturn in the Internet search leader's ad prices deepened.
The results announced Thursday show Google is still having trouble navigating a technological transition driving more online activity on to smartphones and tablets. Those devices pose a challenge because their smaller screen sizes fetch lower ad rates than on traditional desktop and laptop computers.
Google's stock closed down 0.86% to $910.68 Thursday, leaving a market cap of $302.1 billion, based on 331.7 million shares outstanding. The 52-week range is $928 and $576.13.
Google Inc.'s average ad rate fell by 6 per cent from the same time last year during the three months ending in June. It marks the seventh consecutive quarter of falling ad prices.
Google earned $3.2 billion, or $9.54 per share, up 16 per cent from $2.8 billion, or $8.42 per share, a year earlier.
Revenue rose 19 per cent to $14.1 billion.
Despite the lower ad rates, Google CEO Larry Page focused on the increased revenue and the potential from mobile ads.
``The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google,'' he said in a statement. ``With more devices, more information, and more activity online than ever, the potential to improve people's lives even more is immense.''