The firm said Google is the clear leader in search, maps and its web browser Chrome, and added that their services along with its video sharing site YouTube are unmatched.
Jefferies analysts credit Google's "core expertise" in delivering and organizing content through its cloud data centers for its dominance.
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"Our analysis suggests that Google provides the majority of most popular consumer cloud services, which are expanding penetration through Android, Chrome, iOS, Windows, and other devices, unlike Apple's iCloud which remains focused on iOS devices," noted Jefferies.
Shares of Google are lower by 0.66% to $540.92 in early market trading today.
Separately, TheStreet Ratings team rates GOOGLE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GOOGLE INC (GOOGL) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, increase in stock price during the past year and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income."