"We are below Street in 2015 and are slightly lowering 2016 EPS, the key valuation metric, to $33.81, which is below Street at $35.77," analysts said.
"Increased regulatory risk, particularly in the EU, strong Apple product cycle and search contract renewal uncertainty, competition (FB in ad networks, possibly search) and reversal of U.S. online advertising market share gains due to social emergence" additionally led analysts to estimate Google's U.S. market share will fall from 41% in 2013 to 40% in 2014E and 39% in 2015E.
Shares of Google are down 0.92% to $537.57 in pre-market trading.
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 a few notable 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, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."