With all the volatility in the US markets, it may have been easy to miss an important earnings release from Google

With all the volatility in the US markets, it may have been easy to miss an important earnings release from Google. The Internet search giant produced worse than expected results, but the fine print points to a promising future. Adjusted EPS came in at $6.35 compared to expectations of $6.53 while revenues (minus commissions) were $13.17 billion versus projections of $13.22. Costs-per-click also dropped 2% from a year ago. However, cost-per-click has been steadily declining as advertisers and users shift to the cheaper mobile environment. Moreover, total number of user clicks on Google ads increased 17% year-over-year - possibly the most important metric. In addition, revenue from other categories increased from 10% to 11% of total revenues. That includes app sales, digital music downloads, and other businesses. Look past the short-term data, and Google appears to be in better shape than what's being reflecting in the price action. (VIEW LINK)