The way things are going for Google Inc. (NASDAQ:GOOG), analysts believe that soon the company will become the only United States listed company to surpass the market cap of $1 Trillion by the year 2020. If the company did hit this market it would take its stock value to $15,000, almost double its current value in the stock market. Currently the company’s market cap stands at $328 Billion, which is quite lower than what Gillis expects Google to achieve by 2020; however there is a lot of time to go and considering Google’s stature it does not seem unlikely that it will hit the $1 trillion mark.
Google will announce its earnings reports for its quarter ending in September this Thursday and it is expected to show a 23 percent growth rate in this latest quarter. Analysts believe that Google is going to grow even bigger and stronger in the future because of its large investment in future technologies like robotics and self driven cars.
Google’s long term investment in the robotic sector is also making analysts give optimistic forecasts for the company’s future. An analyst Collin Gillis is expecting Google to reveal $16.7 Billion revenue in its soon to be released quarterly report. This figure is more than what the general estimates state, which quote a figure of $16.6 Billion in revenue.
Gillis believes that Google Inc.’s website revenue will grow by 23 percent, which represents $11.5 billion in revenue. He also expects that Google’s Paid Clicks will also see an increase by 24% whereas the company will suffer a decline by 4% in its Cost per Click. However Gillis believes that this decline will soon change into positive numbers and contribute to the tech giant’s overall revenue; he expects this turnaround to be sooner than later. Google has also ventured into low-end smartphone market and with its Android One technology it seems well poised to capture a major share of it. This will also reflect well on the company’s future revenue and stock value.
Gillis has given the Google stock a rating of Buy and price target of $650 / share, which is quite impressive. He also raised his 2014 and 2015 estimates for the company.
Gillis also believes that Google’s efforts in Robotics will soon bare results; usually every venture taken by the tech giant calls for a 10 year period before definite results can surface.
The question is will Google achieve this target? It could, but it will have to start earning more profits than Apple because currently the maker of iPhone has a better profit outlook and market cap than Google. In the year 2013 Apple’s net income was also more than what was reported by Google. If what Icahn said in his letter about Apple’s actual worth being $203 turned out to be true than Apple will definitely hit the $1 trillion market cap mark.
Gillis believes that next 5 years for Google Inc. (NASDAQ:GOOGL) will have a strong impact on the company’s outlook for the future; they may also prove decisive in determining whether the company will reach the target of $1 trillion market cap or not.
