Google shares slide after Q3 earnings miss

Google growth-on-clicks disappointment: Pro

Google shares dipped after it delivered quarterly earnings and revenue that missed estimates. The online giant's cost per click—how much it earns when a user clicks its advertisers' ad—continues to decline.

During the third quarter, CPC dropped 2 percent, year over year, versus expectations of a 4 percent decline, according to StreetAccount. Meanwhile, the number of paid clicks rose about 17 percent from a year ago, compared to forecasts for growth of 23.5 percent, according to StreetAccount.

Shares fell as much as 6 percent before easing in after-hours trading.

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"Negative pressure on price per click from the drift over to mobile search wasn't as bad as people thought. From that standpoint I think the stock is set up well for holiday shopping season and advertising," says David Garrity of GVA Research.

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Google handed in third-quarter earnings of $6.35 per share on $16.52 billion in revenue, missing expectations for earnings of $6.53 a share on $16.57 billion in revenue, according to a consensus estimate from Thomson Reuters.

"Google core revenue was roughly in line with estimates. EPS slightly lower, but if you take into effect the strong dollar, that's what weighed on revenue growth," says Aaron Kessler of Raymond James. "I think at current valuations, around 15 times earnings, I think there's valuation support at these levels."

Google has largely outperformed the Nasdaq. As of Thursday's close, the Internet company had gained nearly 19 percent over the last year, while the Nasdaq rose about 10 percent during the same period.

Read MoreGoogle unveils Nexus smartphone, tablet

Google generates most of its revenue from its desktop search and advertising business—it dominates around 70 percent of the global search ad market—but it has made major moves toward expanding its offerings beyond search.

On Wednesday, the search giant unveiled three new Nexus devices as it looks to gain a bigger share of the high-end mobile market. The Nexus 6 smartphone, Nexus 9 tablet and the Nexus Player streaming devices are priced near, or in line with, competing devices from Apple, which on Thursday announced its new iPad Air and iPad Mini 3 tablets.

Also on Wednesday, Google unveiled a new version of its mobile operating system, called Android 5.0 Lollipop.

Earlier this week, the tech heavyweight expanded Google Express, its Amazon-like shopping and shipping service, to three more cities. It also said 16 additional brick-and-mortar retailers plan to offer same-day delivery through the platform.

Google also disclosed this week that it has discovered a design vulnerability in the widely used SSL 3.0 technology that could open encrypted data to hackers. The stock tanked after the news broke.

--CNBC's Lee Brodie contributed to this report.