Companies get stuck here all of the time.

Google’s latest earnings while good they weren’t great.  They were above expectations but they didn’t knock it out of the park. Think of Berkshire Hathaway or GE and how many different lines of business they have and how each one is presumably a thriving business – errrr I guess that’s why NBC is gone now.  Berkshire Hathaway or GE’s business diversification inherently mitigates risk.  Google has  one line of business making money: Advertising.  They aren’t diversified.  Mobile phones and Android is one potential play but its going to take awhile before it makes any real money (plus android is free) and Google Apps has been growing on top-line revenue, but most of the company (about 96.9%!) is  still fueled by advertising. Sure advertising on the web plus search is here to stay but one trick ponies rarely stay on top.

Google is not in the search business. Search is simply the conduit to feed you advertisements.