Google reported strong revenue growth for the June quarter, but fell shy of Wall Street's estimates, sending the stock down by as much as 5% in after hours trading.
The search giant reported earnings per share of $9.54 on revenue of $14.11 billion for the quarter, a 19% increase in revenue from the same quarter a year ago. However, Wall Street had expected Google to report earnings per share of $10.4 on revenue of $14.4 billion.
To make matters worse, Google reported a 6% year-over-year drop in the average price for cost-per-click for ads it served, presumably due to the increasing number of mobile ads it serves at a lower cost.
Google's stock dropped back into the mid-$800 range following the disappointing report. The stock had topped $900 for the first time in mid-May as investors showed renewed optimism in the company's success on mobile as well as its ability to bring new breakthrough products like Fiber and Google Glass to market. Many assumed that if Google beat on earnings for the quarter, it would head straight to $1,000.
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