July 8, 2011 – NEW YORK (Reuters) - Morgan Stanley analysts downgraded Google Inc shares to "equal-weight" from "overweight" on Friday, citing an expected decline in margins in this year and the next.
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The brokerage said the overall consensus is currently "too optimistic" on the net revenue contribution of Google's newer businesses. It expects a decline in EBITDA margins in 2011 and 2012.
The stock fell 2.1 percent to $535.28 in early trading.