Google may disappoint investors when it comes out with earnings, as the firm faces increased competition and revenues are impacted by the strong dollar, says Saxo Bank’s Head of Equity Strategy Peter Garnry.

Advertising revenues remain Google's core business. Sixty percent of Google’s ad sales come from outside the United States and the strong dollar could prove a drag on the results. The company is also facing fierce competition from Facebook especially in the area of mobile advertising.

Google shares are down 16% this year and with continued pressure on ad sales, the company is facing headwinds, says Peter Garnry.