Is Google Losing its Search Market Share?

At the closing of the first quarter of 2011, Google appeared to have lost search market share and had lower earning expectancy. In view of this, Google will have to look beyond its current search product so that it can boost future revenue.

Fast Facts

•Comparing both 1st Quarters of 2010 and 2011, the earnings of Google increased 27% but not enough to keep investors satisfied.

•Google profited $2.3 billion on $8.58 billion with $8.08 per-share earnings but not enough to get the expected amount of Wall Street $8.11 per share.

Reasons Why Investors don’t have more Faith in Google

•Failed Social Initiatives

Google Buzz launched but the company has been plagued by a series of social failures. On top of that, Google was accused that they were envious of the popularity of Facebook. The social failures prompted investors to lose confidence in them. It has been noted that Facebook has surpassed Google in page views and Americans spend more time on social networks than searching.

•Recent Departures

The failures that Google faces represent internal problems including managerial, development-related issues and operational. In so much as this contributed to the loss of confidence among investors, the company also has its own share of departures which added more fuel to the fire.

•Market Share Dipping

Whether the dipping of Google’s market share is a result of the loss of investor confidence or vice versa, the two subjects seem to be treading the same path downwards.

Is Google already withering? The answer is yet to come especially with the upcoming plans of the company to maintain its growth and restore the confidence of investors.