By Jason Schwarz of

Google's ( GOOG) in trouble. I'm forecasting the next 24 months will take this stock back to its first-year initial public offering levels of $300 a share. The Internet search giant has ruffled the wrong feathers.

When I hear Apple ( AAPL) CEO Steve Jobs mention that he feels betrayed by Google CEO Eric Schmidt, and when I see Apple go out and buy its own mobile advertising firm, I begin to question Google's future growth prospects. Apple's Quattro is coming, it's going to be revolutionary, and it's going to be the most important contributor to Google's demise. But it won't be the only contributor. With Google it's a matter of picking its poison.

1. Leadership

This company is running like a chicken with its head cut off. Schmidt is flying solo without the help of founders Larry Page and Sergey Brin, who are actually selling shares themselves. It's not exactly a ringing endorsement from the innovators.

2. Profitable Innovation

In a rapidly changing landscape of mobile innovation, Google is having difficulty making money on anything other than its core desktop search business. Desktop search advertising was a great business to be in during the last decade but its growth now looks limited because of the shift towards mobile computing.

Schmidt knows Google is vulnerable, which explains why we hear about yet another Google experiment on a weekly basis. Last week it was Google broadband; this week it's Google TV. It's all a big joke. Even Android is a joke. The recent market share gains from Android are misleading because it suggests Google is making money when all the company really has done is give it away for free. Investors are ready to see profits beyond desktop advertising. Twenty four months from now, desktop Internet surfing will be in dramatic decline.

3. Mobile Search Competition

Mobile versions of Twitter, Facebook, and Microsoft's ( MSFT) Bing will give Google a run for its money. And I would not bet against Jobs and Apple's Quattro. The problem for Google is that the mobile Internet relies on applications rather than Web sites. Apple controls more than half of the mobile Web market share, and Google is one Jobs decision away from being left out of the Apple ecosystem. This makes Google extremely vulnerable.

Sources from Business Week revealed that Jobs hopes to "overhaul mobile advertising in the same way they had revolutionized music players and phones." AppleInsider reported that "specifics at the moment are not known, but a number of potential approaches were offered: Apple could rely on user data collected through iTunes and the App Store, along with geo-location technology due to GPS in the iPhone, to create targeted, local advertisements that would be more relevant to consumers. The company could also utilize gimmicks, such as having users shake their iPhone to win a prize."

The report added that "some developers have profited by embedding ads in their apps, but the payments tend to be insignificant since the ads are usually smaller, less effective versions of their Web banner forms." In addition, "according to a source familiar with his thinking, Jobs has recognized that 'mobile ads suck' and that improving that situation will make Apple even harder to beat."

4. Brand Trust

Google's Nexus One was a disaster on so many levels. Google rushed the product to market without customer service. The trademark application was subsequently denied by the U.S. Patent and Trademark office. It rushed the product to market and caught all of its Android partners off-guard who never thought Google would come out with its own phone to compete.

Now do you understand why I compare this company to a chicken running with its head cut off?

While Apple spent years securing patents to protect the intellectual property of the iPhone, Google is late to the game and is running scared. How much money will consumers invest in Android apps when they know Google offers no tablet computer and might not continue with the Nexus One? Whereas you go with Apple and you know that your apps and iTunes library will work on your iPod, iPhone, iPad, and next year they'll probably work on the iTV as well.

5. China

This China thing has been catastrophic for Google. After struggling to gain any share from Baidu ( BIDU), Google is out of a country that has more Internet users than the U.S. has people. Not good, especially if Google had any aspirations of growing its Chinese Android platform.

Desktop search advertising is Google's bread and butter, but two years from now the landscape will be completely different. Investors will look at Google as a declining search-market share story. That's not a good thing when you're stock is priced near $600 a share.

Google reminds me of Research In Motion ( RIMM) two years ago. Back then, everyone assumed RIM was untouchable as well. The problem is that when you go to war against Apple you better be more than a one-trick pony.

Google is scrambling to come up with a family of products similar to Apple's but it simply is not in the company DNA. Google does search, that's it. Its software is profitless and its hardware is copycat. I'm not saying that Google is going to disappear, but I am saying that its days of high growth are over and that means the stock is doomed over the next 24 months.

Investors might make more on Google puts than on Apple calls.
At the time of publication, Schwarz was long Apple, short Google.

Jason Schwarz is an option strategist for Lone Peak Asset Management in Westlake Village, Calif. He is also the founder of the popular investment newsletter available at Over the past few years, Schwarz has gained acclaim for his market calls on the price of oil, Bank of America, Apple, E*Trade, and his precision investing in S&P 500 option LEAPS. His book, The Alpha Hunter, is set to be released by McGraw Hill in December 2009.