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.
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