"These mobile clicks are less effective and [Google is] monetizing less than the wired Internet," Gillis said. "It may be solvable, but it’s certainly not being solved right now,”
Gillis also sees “serious margin erosion” at the search giant as expenses rise.
“They keep growing their expenses faster than their top line,” Gillis said. “For a company of this size, I find that a little bit disturbing.”
Google’s ascent to the number two spot behind Apple in tech market cap on Tuesday follows a recent escalation of the rivalry between the two tech giants.
Apple recently replaced Google Maps with its own maps system on its latest operating system, iOS6. The switch — a rare misstep by a company that can do no wrong in the eyes of investors — drew complaints from customers, who were disappointed with the application’s accuracy. The bad press prompted a rare apology from Apple CEO Tim Cook.
“I think you’re going to see Apple continuing to move further and further away from Google as Google continues to really be a direct competitor on the hardware, on the software, on the ecosystem, on everything,” Schachter said.
—By CNBC.com's Katie Little; Follow Her on Twitter @katie_little
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Neither Ben Schachter nor Colin Gillis own shares of Google.