For more than a decade, from 2001 until about 2013, Microsoft’s stock bounced around the same price, as investors realized the software giant’s big growth days were over. There are a growing number of signs that Google has entered what could be a similarly lengthy flatline period. What this reflects is that, declining search forecasts included, no one really knows how dominant Google will remain and it may be time for investors to have some faith.
Investors are worried that Google’s already-slowing revenue growth rate could decelerate even further as people spend more time on mobile devices, where Google’s search business is weaker than on desktop. Google stock has dipped around 1 percent in the past year even as the Nasdaq has roared ahead by more than 20 percent.