Google's Profit Miss by the Numbers

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July 19 (Bloomberg) -- Google reported second-quarter sales and profit that fell short of analysts’ estimates as advertising tied to mobile devices crimped average prices. Caroline Hyde reports on Bloomberg Television's "Countdown." (Source: Bloomberg)

Many would feel that is good results.

But it did miss expectations in sales and profit.

It is all about mobile, monetizing mobile for google.

In many ways, google is a leader in terms of tablets and smartphones.

They have one operating system.

Android.

They have been able to foretell this transition about how you make money from this.

And, the key business line is advertising in terms of the search engine.

The amount they charge for a smart phone is a lot less than what they charge for pc.

40% less.

It is not the cost to google but the road cost to advertisers.

It is the revenue for google.

The amount of clicks are rising.

We are clicking on these a quarter more.

It rises 23%, that is how much more they saw a click rise.

The cost per click, the amount they charge advertisers each one, that is down six percent, double wes estimates had been.

We are all -- we are all using them more.

Therefore , the monetization gap, the mobile monetization gap, is not working.

More people online, hence they are offering the android operating system for free, more searches, more revenue, not the more revenue.

The company making the point they are investing in ways business can help customers to reach clients, or you and i, on mobile devices, they are investing on this business.

And they are hoping they can charge more.

They will be more targeted.

Mutuals have been rolled out to these clients, marketers, to reach the mobile.

They hope it will boost the average rice.

They will manage the times at which you can advertise and also to track the performance of a certain ad campaign.

You get feedback and that would and so much more information to the companies.

They hope they can charge more.

Also, they are helping track you and i and have more advertisers rather than an apt developer.

Improving the android operating system as well.

A concern of the smart phone market is android.

Also, the foray into mobile directly.

They will be launching a new product, improving the experience.

Therefore, having more people using the internet they hope will encourage more advertisers to advertise mobile and pay up for it.

This is the big business.

They are investing in future and mobile ads area these things take time to bring the changes out.

Also, to bring out these new innovations.

The share rices are up 29% almost 30% year to date largely on these hopes of google glasses and the new motorola.

They take times.

-- time.

There are a lot of big opportunities in the market, and it is hard to make them real and get them to billions of people.

It is a different thing to turn these ideas into reality and practice.

Thank you very much.

This text has been automatically generated. It may not be 100% accurate.

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