Google Inc. (NASDAQ:GOOGL) revealed its third quarter earnings report according to which advertisement remains the strongest source of revenue for the company. The internet giant also missed revenue and earnings estimates because of slow CPC growth.

Google Inc. (NASDAQ:GOOGL) revealed its third quarter results on Thursday after the market closed. The report revealed a few disappointments, which are unlikely to affect the stock value in the longer run. After the results were announced the stock went down by 2% after hours. To everyone’s surprise the internet giant missed revenue and earnings estimates. 89% of the total revenue reported by the company came from its advertising, which remains the main revenue generator for the company.

Senior Vice President and Chief Finance Officer of Google Inc. (NASDAQ:GOOGL), Patrick Pichette, was not disheartened by the results. According to Pichette Google Inc. (NASDAQ:GOOGL) will not stop investing in opportunities for strategic growth, which include Android YouTube, Cloud, Google for Work and Chromes.

Here is a snapshot of Google Inc. (NASDAQ:GOOGL)’s third quarter results;

Google Inc. (NASDAQ:GOOGL) posted an increase in net income (non-GAAP) by 14.4% as compared to last year’s third quarter, which makes it equal to $4.37 billion. EPS or Earnings per Share missed the mark of estimated $6.52 and were recorded at $6.35.

A 20% year-over-year improvement was reported in revenue for the quarter, which was $16.52 billion out of which partners had their share. Total revenue that went to Google Inc. (NASDAQ:GOOGL) for the quarter is $13.17 billion, which missed the estimates of $13.2 billion.

As far as advertisement is concerned Paid Clicks for Google Inc. (NASDAQ:GOOGL) increased by 17% as compared to last year’s same quarter. Cost Per Click went down by 2%. Google Inc. (NASDAQ:GOOGL) has been having these weaker results for CPC for its last 6 quarters. It seems that the internet giant needs to re-evaluate and re-consider its advertisement trends, which are changing and evolving very rapidly.

Network Paid Clicks went up by 2% and missed the estimates of 14% and Site Paid Clicks went up by 24%.

Google Inc. (NASDAQ:GOOGL) does have something to think about now because this decrease in Paid Clicks happened despite the company’s heavy investment in TAC or Traffic Acquisition Costs. The company invested a total of $3.35 billion in TAC, out of which $2.42 billion was given to network members for Network Paid Clicks, which were as low as 2$.

These earnings reports caused a few problems right after they were announced. A few analysts reduced Google Inc. (NASDAQ:GOOGL) stock’s target price. The stock currently has a $658.3/share target price. Not a single analyst related to the company’s stock has given it a Sell rating yet. The stock has been given a Buy rating by 45 analysts.

Google Inc. (NASDAQ:GOOGL)’s stock opened up today (Friday) at the stock market at a value of $540.45. After almost an hour into the morning trading session the share value dipped by -0.70% to land at a value of $533.15. The stock’s range over 52 weeks has been between 443.57 and 615.42.

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