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April 15, 2011

Why Google Search Marketshare is Stagnant

New data from comScore shows Google's share of the U.S. search market has remained flat, stuck in the 66% percent range.

This is a problem for Google because it still gets the vast majority of its profits from search. Yes, the overall search market continues to grow, as does revenue per search. But, it's clear Google is not going to completely dominate the search market.

If Google's stock is ever going to start soaring again, Google will have to prove it has a second real profitable business beyond search.

According to Businessinsider , Microsoft's Bing search engine has managed to pick up a few percentage points of search share in the last year. But it's paying an unbelievable amount for those few points of share, and it's taking away share from its partner, Yahoo.