What does it mean? The Google 2.0 hypothesis is that investors are nervous about Google's inability to find a second leg for its business. The company remains all search ads, and despite repeated forays into other services -- i.e., Google Finance, radio, Google Apps, etc. -- it has yet to find a new business that takes any heat off the core advertising biz.
True enough, and I'm the last to be a Google apologist, but so what? The $130-billion global advertising business in the middle of the largest change in its hundred-year history. And Google remains ideally positioned to continue to benefit. Granted, the company has to continue to overcome its own growing size -- it wasn't a multi-billion-dollar run-rate company when it did its IPO -- but it is still growing impressively.
So, no concerns? Of course, there are plenty. Let's just start with capital spending. There is a whiff in the investment community that Google could be Amazon (AMZN) 2.0 rather than Microsoft (MSFT), with capex damaging cash flow, and that has investors rightly concerned.
GOOG 1-yr chart