Alphabet Inc. (GOOG) Q1 Earnings: Falling Ad Rates At Google Hit Revenue, Profits While Losses Expand At ‘Other Bets’

The little blue links in Google search results are selling at a discount. Revenue and profits at parent company Alphabet Inc. (GOOG) missed Wall Street estimates for the quarter ended March 31, sending shares down 5 percent in after-hours trading.

The culprit? Google gets paid when a user clicks on a search ad, and advertisers paid 9 percent less per click in the last quarter over the year prior. That and the effect of unfavorable foreign exchange rates hit both total revenue and profitability.