The article compares Google to Microsoft. Microsoft, too, had a dominant position in a lucrative market (and still does, with revenues ~50% higher than Google).

The article compares Google to Microsoft. Microsoft, too, had a dominant position in a lucrative market (and still does, with revenues ~50% higher than Google). Microsoft also underwent a decade of a flat stock price. Their revenue kept growing during this period. It grew by a lot! But their P/E declined, from the 40s to 12 or so. This is because all of the action (iPod, Google Search, iPhone) was happening outside of MSFT. The "growth genie" was gone, and they transitioned from a growth stock to a value stock, and (as perceived) an innovative company to a company protecting its cash cows. The article discusses whether Google will undergo the same fate. Being the undisputed leader in online advertising is an enviable position; the question is whether Google can grow to be more than that.