Google and Microsoft have both announced earnings that did not match up to the expectations of analysts in their latest financial reports.
Profits of $9.7 billion (£6.4 billion) were recorded by Google, which is up 16 per cent from a year ago, but still less than had been predicted.
Microsoft made $4.5 billion in the second quarter, but it was announced by the firm that it will take a $900 million charge relating to poor sales of its Surface tablet, reports BBC News.
Advertising revenue – which is one of the main income streams for Google – was up 15 per cent over the course of the three-month period.
Chief executive Larry Page explained the search engine giant is adapting to the increased use of mobile phones, adding: "The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google."
Earlier this week, the share price of Google rival Yahoo! hit an eight-year high after the firm revealed its latest financial data.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.