Google Warns Investors Before Earnings Release

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Android LogoBut there is often a discrepancy between expectations and reality (the definition of disappointment). Google missed earnings expectations last quarter by nearly 15 percent. This means analysts were either looking for too much from the company, or the markets have thrown Google a curve ball and it’s struggling to adapt.

The company’s advertising business is closely watched not just because it produces the majority of Google’s revenues, but because it can be an indicator for the digital advertising market at large. Observers can study the affect that smartphones and tablets have on advertising prices, and try to gain insight into truly monetizing mobile technology. Google’s ad prices have fallen year over year for four years in a row, mostly on the back of the trend away from traditional computers.

There’s also the ever-looming competitive threat of Apple (NASDAQ:AAPL), which Google CEO Larry Page recently antagonized. In an interview with Wired, Page said that “You may say that Apple only does a very, very small number of things, and that’s working pretty well for them. But I find that unsatisfying.”

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