Google's quarterly results fail to impress

Google has reported solid quarterly results, but the stock market was not impressed with the search firm's inability to meet analyst expectations.

Google logged a quarterly profit of US$1.8 billion, but the company's stock price continued its three-month slide which has wiped nearly a fifth off the company's value.

"We saw strength in every major product area as more traditional brand advertisers embraced search advertising, and as large advertisers increasingly ran integrated campaigns across search, display and mobile," said chief executive Eric Schmidt.

The revenue Google generates per click rose less quickly than analysts were expecting, and it was suggested that Google is missing the next piece in its business plan, i.e. how to move on from search revenue alone.

"It's an incredibly talented pony, possibly the most talented pony we've ever seen, but we're waiting for that second trick," digital media analyst Jordan Rohan told The New York Times.