The last quarter of 2017 saw very good ad sales for Google. This helped Alphabet bring in a lot of cash. But, things are not looking good as far as the profits of last quarter of 2017 are concerned. The Google ad business is not going on the expected lines and is showing some holes.
The Wall Street expectations of $9.98 earnings per share were not achieved. The company was able to get only $9.70 per share. The Google ad business has posted a loss of $3.02 billion for the last quarter. This is due to the changes in the US tax system. A total of $9.9 billion is tied to the tax changes.
Google enjoys very good revenue through the ad clicks. But, the main issue here is that these ad clicks are now coming from the ads on the mobile phones and the YouTube videos. The ads clicked through desktop computers are the ones that earn Google more money. So, the cost per click has reduced by 14% during the last quarter.
Google is the leader in the search engine market. Its main revenue is from the advertising. The major share of Google’s revenue is lost by paying its partners like Apple for being the number one in search engines.