Tech titan Google has recorded an uncharacteristic slide in profits over the third quarter to a still substantial $2.8bn, a 5 per cent decrease versus the same period a year earlier.
Revenues for the same period came in 20 per cent higher at $16.52bn although this was also below analysts’ expectations.
The disappointing results were driven by a 2 per cent decline in the average cost-per-click that it can command together with rising costs of real estate such as data centres which swelled 37 per cent to $3.35bn. The drop in third-quarter earnings is also due the hiring of nearly 3,000 more employees while pouring more money into its zest for innovation and quest for new markets.
Google chief financial officer Patrick Pichette remained optimistic for the future however, saying: “We continue to be excited about the growth in our advertising and emerging businesses.”
Some of the other innovations that Google is still trying to fine tune include Internet-connected eyewear, Internet-beaming balloons, a fleet of drones, driverless cars and robots.
The results announced on Thursday fell below analyst estimates, causing Google’s stock to drop by $12.92, or 2.4 per cent, to $524 in extended trading. The shares had already declined by 4 per cent so far this year.
