Barclays: Siri Threatens Google in Mobile Search Arena

Apple’s (NASDAQ:AAPL) Siri language assistant, available on the iPhone 4S, presents some interesting challenges for Google (NASDAQ:GOOG). As long as Apple keeps a hefty mobile operating system share, Google is going to have something to worry about, says Barclays Capital’s Anthony DiClemente, according to Tiernan Ray of Barron’s.

DiClemente, who rates Google shares Overweight, pointed out that Google thinks that 20 percent of all paid searches will be mobile and, according to data from September 2011, two thirds of mobile searches come from Apple’s iOS devices. Data from comScore shows that in September Apple claimed 62 percent of all “mobile OS traffic share,” and in December it claimed 60 percent.

According to data from application developers Dygest Inc., who make the social networking app Scoople for iPhone, 32 percent of Scoople users are already using Siri instead of Google for their searches, and 56 percent of Scoople users would even buy one type of car rather than another based on Siri integration, said Barron’s.

Siri responds to voice commands to perform functions and access online data sources, including Google, Microsoft’s (NASDAQ:MSFT) Bing search engine, Yelp (YELP), Yahoo! (NASDAQ:YHOO) and the Wolfram Alpha program to provide users with information without them having to actually perform a search.

According to DiClemente, Google is expected include a voice-recognition feature called Assistant on the next version of its Android operating system, which will be able to perform more advanced searches and will be able to access Gmail, Google + and more. Siri will still be a drag on Google’s revenue from mobile searches simply because it will divert some of the market, but DiClemente said Google is still a “top pick.”

Here’s how these stocks are trading:

Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $551.47, up $6.3, or 1.16%. They have traded in a 52-week range of $310.50 to $548.21. Volume today was 11,258,886 shares versus a 3-month average volume of 15,584,000 shares. The company’s trailing P/E is 15.69, while trailing earnings are $35.14 per share.

Google Inc. (NASDAQ:GOOG): GOOG shares recently traded at $605.17, up $4.92, or 0.82%. They have traded in a 52-week range of $473.02 to $670.25. Volume today was 1,273,009 shares versus a 3-month average volume of 2,774,540 shares. The company’s trailing P/E is 20.33, while trailing earnings are $29.76 per share.

Microsoft Corporation (NASDAQ:MSFT): MSFT shares recently traded at $32.16, up $0.17, or 0.53%. They have traded in a 52-week range of $23.65 to $32.44. Volume today was 22,414,084 shares versus a 3-month average volume of 53,985,100 shares. The company’s trailing P/E is 11.64, while trailing earnings are $2.76 per share.

Yahoo! Inc. (NASDAQ:YHOO): YHOO shares recently traded at $14.56, down $0.07, or 0.48%. They have traded in a 52-week range of $11.09 to $18.84. Volume today was 5,614,709 shares versus a 3-month average volume of 18,731,700 shares. The company’s trailing P/E is 17.83, while trailing earnings are $0.82 per share.

To contact the reporter on this story: Gina Smith at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com