Google shares dipped precipitously in after-hours trading Thursday when the world’s leading search giant reported second-quarter sales and profit that fell short of expectations.
Revenue for Q2 came in at $11.1 billion, which was short of the average analyst estimate of $11.3 billion.
Profit before certain items was $9.56 a share, less than the average projection of $10.80. The shares slid as much as 5.7 percent.
What’s more, Google’s average cost per click fell 6 percent as more marketers flocked to mobile rather than the traditional desktop.
“The challenge is for Google to reignite revenue growth as their existing businesses start to mature,” Colin Gillis, an analyst at BGC Partners LP, tells Bloomberg. “The core business is slowing down.”
At one point, shares of Google plunged to $858.80 in late trading after closing earlier that day at $910.68.