Scott Kessler of Standard & Poor’s recently downgraded Google from hold to sell. In this Business Week article, he explains many of his reasons, including:
When it comes to the building competition, part of what they’re trying to do is diversify beyond Internet search advertising, but they are also trying to make their offerings more inviting and sticky to users. One of Google’s shortcoming is that even though users like its search offering, they don’t spend a lot of time on it. We’re seeing Google trying to provide more personalized services — enabling users to sign in, use e-mail, and access content that’s preselected and determined by the user.