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Google Q2 Revenue, Profits Rise but Fail to Meet Expectations

Shares fell after the tech giant disclosed a drop in ad sales during the period

Google on Thursday reported a weakening of prices for its online ads in the second quarter and its shares fell more than 5 percent in after-hours trading.

Revenue and profit for the Google, the world's No. 1 Internet search engine, rose during the period, but fell below expectations.

Net income in the quarter was $3.23 billion, or $9.54 per share, compared with $2.79 billion, or $8.42 per share, in the year-ago period.

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Google's consolidated revenue, which includes results from its Motorola mobile phone business, was $14.11 billion in the second quarter, versus $11.81 billion in the year-ago period. Revenue for its core business rose 20 percent to $13.11 billion.

The average price of Google's online ads decreased 6 percent year-on-year in the second quarter, after falling 4 percent in the first quarter.

Google shares have traded at all-time highs recently, peaking at $925 on July 15, before falling after the bell to $865.08 on Thursday. The shares closed at $910.68 in regular trading on the Nasdaq.