One issue is that ads on mobile devices cost less than ads for other platforms and as a result, even as the company successfully makes the transition to mobile, the average cost-per-click of its ads went down by about 7 percent last quarter. Google officials say that as mobile computing becomes more imbued with work and recreation, ads on mobile platforms will become more remunerative.
Investors seem to agree, as Google shares rose Friday by $21.09 to hit $601.90 in afternoon trading.
On its part, Yahoo said Tuesday that sales for the second quarter were $1.08 billion, down 4 percent year over year, while revenue excluding traffic acquisition costs was down 3 percent to $1.04 billion.
During her two-year tenure as CEO, Marissa Mayer has revamped cloud and mobile services such as Flickr, launched digital video projects and overhauled its news strategy, but critics point to a lack of a coherent strategy. Company shares are being kept afloat due in large part to its huge stake in Chinese Internet giant Alibaba, which is about to go public in the U.S.
One area of tech that bucked the general trend for cloud- and PC-related sales was the market for semiconductors, which was given a boost by unexpected good news for PC sales during the second quarter. While market research firms had slightly different numbers, it appears that the decline in PC sales halted, or nearly so, in the quarter thanks in part to the move to replace aging Windows XP PCs.
The better-than-expected PC market helped Intel, which is in the middle of its transition to offering a wide range of components for mobile devices. Intel Tuesday reported a profit of $2.8 billion, up a whopping 40 percent year over year, while revenue was $13.8 billion, up 8 percent.
Intel rival Advanced Micro Devices said Thursday that second-quarter revenue was $1.44 billion, up 24 percent year over year. Unlike Intel, though, its PC chip sales declined, and due in part to costs associated with restructuring and debt, it suffered a net loss of $36 million.
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