Google isn't winning in mobile

With search moving away from desktops to mobile, Google has been competing for as revenue with the much better poised Facebook, Microsoft, and Apple. This has greatly affected investor confidence, but Sheridan says he deems the company to be competitive enough.

Google search is widespread due to its widely popular mobile operating system, Android. Chrome is the number one browser, and apps such as Google Play are the most used and continue to grow in popularity.

UBS analyst Sheridan thinks that these conditions will satisfy investors, as long as they hold steady.

Google doesn’t have a dividend plan for shareholders

Like most companies in the tech space, Google has never given shareholders any dividends. Neither has Yahoo, which doesn’t show evident signs of growth, or Apple, the wealthiest company in the world in terms of market capitalization.

However, the shareholder pressure on all tech companies to return cash has been gaining ground.

With Google’s cash reserves of 58 billion being roughly equal to 15 percent of its market capitalization, Sheridan thinks that it is expected that Google will adopt a dividend policy for shareholders in the next few years.

Bank of America’s Post also doesn’t discount the possibility of stock buybacks.

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