In 2012, the most profitable move investors could have done was to exit Apple and enter Google. This year, the tables have turned.
Google announced its second quarter revenue yesterday, and it is not looking pretty. The most popular website in the world stated that its adjusted earnings for every share amounted to US$9.56. This is unexpectedly lower than analyst estimates which landed at US$10.80 per share on an average.
The search engine's shares dipped by 5% to under US$870. Google's pay per click scheme declined by 6% in the second quarter report. The decline surprised financial analysts, who did not expect a figure double that what they predicted.
The trend of mobile computing and the prominence of the smartphones and tablets might have caused Google's fall, analysts said. The company missed the mark in the transition.
"The CPC drop is a bit surprising, and perhaps raises again the question of whether Google really benefits from the Mobile shift," said a research note by RBC's Mark Mahaney as published on the Wall Street Journal.
Apple, however, enjoyed lofty figures which was driven by massive sales from its iPhone 5 product.
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