Google Earnings Report Shows Growth Faltering, As Costs For Staff, Acquisitions Rise

MOUNTAIN VIEW (CBS SF / AP) — Google’s first-quarter earnings growth faltered as the Internet company dealt with a persistent downturn in advertising prices while spending more money to hire more employees and invest in daring ideas.

The results announced Wednesday fell below analyst projections. Google’s stock shed nearly 6 percent in extended trading.

Although it remains highly successful, Google Inc. has been trying to adjust to a shift away from personal computers to smartphones and tablets. The upheaval has been lowering Google’s ad rates because marketers aren’t as willing to pay as much to pitch consumers who are squinting at smaller mobile device screens.

Google earned $3.45 billion, or $5.04 per share, in the quarter. That was up 3 percent from $3.3 billion, or $4.97 per share, last year.

Revenue rose 19 percent to $15.4 billion.

© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.


More From CBS San Francisco

Get The New CBS SF Bay Area Local App
Got Our Weather App?

Listen Live