This may be partly because, for the full year to date, Google has been a laggard. Share prices are down 8% for the year so far, while MSFT is up 17.4% and AAPL up a whopping 43.4%.
But over this week the headwinds for Google have gotten worse:
Android fragmentation is getting worse, not better. Only 10% of devices run the Ice Cream Sandwich version as Google prepared to roll out the new Jelly Bean software.
Google is catching political flak for deciding to ban gun sales from its shopping platform.
Google has decided to shutter a variety of popular services including its iGoogle custom home page and Google Video.
But the big news is mostly negative, and investors have to wonder about Google's top-line growth prospects when it announces earnings July 12. Even with its 2012 fall it still sports a PE ratio of 18, against 14.84 for AAPL and 11.1 for MSFT. So there remains a sound bear argument in the stock, despite this week's action.
Google revenues fell below last quarter's "whisper number" - the most optimistic earnings expectations from analysts - and the earnings whisper number for this quarter is $9.95/share. The current "Earnings Whisper Pivot Point" for the stock is $584, $10/share below current prices.
Disclosure: I am long GOOG.