Dublin, Ireland-based market researcher, Statcounter, says Google’s [NASDAQ:GOOGL] share of U.S. search traffic, excluding mobile devices, declined to 75.3% in December from 77.5% in November, after the Firefox browser made Yahoo their default search engine. Yahoo’s [NASDAQ:YHOO] share of search traffic, excluding mobile devices, grew to 10% from 8%.

Google faces potentially larger losses on mobile devices if they are unable to renew a contract, up for renewal in early 2015, with Apple [NASDAQ:AAPL] for mobile Safari toolbar searches, the current standard on the iPhone and iPad. According to research firm, Kantar Worldpanel Comtech, iOS's share in the US climbed from 43.1% in October to 47.4% in November. Android's lead over iOS in the U.S. has shrunk to just 1% now.

Google’s stock price has stretched its run of losses to a seventh straight session. As of today, GOOGL has fallen over 21.4% from its 52-week high and is in correction territory. The stock has been under selling pressure since mid-summer 2014. Today, GOOGL was traded at an intra-day low of US $495.02, breaking the 52-week low at US $497.19, set at the end of December last year. If the stock can’t bounce off the four-year trend line support, we think that the next supports will be at US $488, US $480 and US $470 or 38.2% Fibonacci retracement.

In December, Analyst Justin Post at Bank of America/Merrill Lynch, cut his price target on the stock citing all kinds of reasons, including lower than consensus estimates, increased regulatory risk in the European Union, threats from a strong Apple product cycle, search contract renewal uncertainty from Firefox and Apple, as well as a sharp rise in capital expenditures, wages, etc. Bank of America’s opinion is that it is becoming more expensive to run Google. 

Today, more analysts became increasingly pessimistic on the company. Analyst Scott Devitt at Stifel Nicolaus cut his GOOGL rating from “buy” to “hold” this morning citing, “the best days for Google stock may be behind it. The company's growth is coming from lower margin businesses as Google nears the mid stages of core business maturation".

In December, analyst Mark May at Citigroup said that $9.4 billion in gross revenue is potentially at risk if Google is unable to renew the contract with Apple for mobile searches. This week, Nomura analyst Anthony DiClemente sent out a note telling his clients that if the search deal fails, Google could shave up to US $2 off its earnings, to US $29.17 EPS for 2015. 

Our take is that it is unlikely that Apple will renew a contract with Google. Mr. Steve Jobs, Apple’s former CEO, had previously said, “I'm going to destroy Android, because it's a stolen product. I'm willing to go thermonuclear war on this.”

Despite all the gloom and doom, analyst Victor Anthony at Topeka Capital is still optimistic about Google’s prospects and told investors to go long on Google in 2015. Mr. Anthony is betting on a Google announcement for a dividend distribution. Our take for a Google dividend is … “Don’t hold your breath”. 

Disclosure: No positions in GOOGL, YHOO and long position in AAPL