Google's margins, hurt by its Motorola unit, may start to improve, Squali said, adding that the company is growing faster and has better margins than Apple.
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"You have a company that has a great business model, which is primarily based on advertising," Wedbush analyst James Dix told CNBC. "They're investing heavily in some new businesses … which gives them the potential down the road to look at new business models."
But the product investments won't divorce the company from its current model near term, Dix said. "Google is doing some perhaps less sexy innovations in the core ad market," he said. "They're innovative in the ad-words platform, which is how they monetize search, so that's really what's going to drive the stock more."