Earnings disappoint at Microsoft and Google
Google and Microsoft have both announced disappointing earnings.
Google and Microsoft have both announced disappointing earnings.
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