This is a problem for Google because it still gets the vast majority of its profits from search. Yes, the overall search market continues to grow, as does revenue per search. But, it’s clear Google is not going to completely dominate the search market.
If Google’s stock is ever going to start soaring again, Google will have to prove it has a second real profitable business beyond search.
Meanwhile, Microsoft’s Bing search engine has managed to pick up a few percentage points of search share in the last year. But it’s paying an unbelievable amount for those few points of share, and it’s taking away share from its partner, Yahoo.
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