Earnings disappoint at Microsoft and Google

Google and Microsoft have both announced earnings that did not match up to the expectations of analysts in their latest financial reports.

Profits of $9.7 billion (£6.4 billion) were recorded by Google, which is up 16 per cent from a year ago, but still less than had been predicted.

Microsoft made $4.5 billion in the second quarter, but it was announced by the firm that it will take a $900 million charge relating to poor sales of its Surface tablet, reports BBC News.

Advertising revenue – which is one of the main income streams for Google – was up 15 per cent over the course of the three-month period.

Chief executive Larry Page explained the search engine giant is adapting to the increased use of mobile phones, adding: "The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google."

Earlier this week, the share price of Google rival Yahoo! hit an eight-year high after the firm revealed its latest financial data.

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