Why Did Google, Microsoft Results Disappoint?

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July 19 (Bloomberg) -- Bloomberg's Dominic Chu breaks down results from Microsoft and Google and looks at why the companies fell short of expectations. He speaks on Bloomberg Television's "In The Loop."

Both are down and the pre market on the heels of that earnings report.

The headline earnings per share for google, $9.56, estimates of $10.80. if you look at their cost per click, that is birthings come into play, you're talking about down 6% vs.

3%. that is what is getting a lot of attention among investors.

They are pushing more into mobile adds, and those are less than personal computers.

We know that is where the industry is headed.

More consumers use these tablets and smartphones, and that is where the focus is moving.

Microsoft missed estimates by the widest margin in at least a decade.

Earnings coming in at 66 pence -- cents per share.

One of the reasons, slowing demand for personal computers that use windows as its operating system.

They also wrote down the value of its inventory on surface tablet computers.

They want to focus more on service and devices, but those devices carry smaller margins.

I want to bring in, forte.

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

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