Google Inc. (NASDAQ:GOOGL) may Have a Market Cap of $1 Trillion and Share Value of $1500 by the Year 2020

694

By Jessica Schultz on October 13, 2014 Company

Google Inc. (NASDAQ:GOOGL) is big; its stock value is unbelievable and it is likely to go even bigger and higher by 2020. The company is set to announce its latest earnings report this Thursday and analysts have big expectations. It is believed that Google’s major business’ growth rate will show an increase by 23% for its latest quarter that ended in September.

According to Colin Gillis, a BGC analyst, Google Inc. (NASDAQ:GOOGL) is likely to reveal overall revenue worth $16.7 Billion, which shows a sequential growth rate of 4.9%. Estimated revenue is $16.6 Billion, which is less than Gillis’ expectations. Gillis also expects to see $6.62 adjusted earnings/share as opposed to estimates of $6.55/share.

Gillis believes Google Inc. (NASDAQ:GOOGL)’s websites revenue to go up to $11.5 Billion, which shows a jump up by 23% for year-over-year. He believes that the tech giant’s cost for acquiring traffic will be $3.3 Billion and its cost for websites of Google Network Members’ will be $3.5 Billion. Paid clicks growth rate is expected to be 24% accompanied by a decline by 4% in year-over-year Cost per Click.

Google Inc. (NASDAQ:GOOGL) currently enjoys a very strong financial standing; according to its June figures (June quarter) the company has cash worth $61 Billion, which equals to $89.17/share. Its operations cash flow is worth $4.5 billion with long-term debt of $3.2 billion.

Gillis increased his 2014 and year 2015’s estimates for Google Inc. (NASDAQ:GOOGL) with a value of $26.63 / share for the year 2014 and a value of $31.59 / share for 2015. Whereas did not changed the price target of $650 / share.

Gillis also believes that Google Inc. (NASDAQ:GOOGL) will soon become the first ever United States company to have a market cap of more than $1 trillion. If this prediction turned out to be true then Google’s share value will go up to $1500. This could be possible if 2020’s $71.14/share estimates for the tech giant is correct. Google Inc. (NASDAQ:GOOGL) currently has a market cap of $382 billion, which is significantly lower than the expected $1 Trillion.

All these predictions are based on a snapshot of Gilli’s forecast for Google Inc. (NASDAQ:GOOGL)’s future.

Gillis also expressed his excitement for Google Inc. (NASDAQ:GOOGL)’s initiatives in Robotics. Andy Rubin, founder of Android, leads Google Robotics efforts. The analyst believes that we may be able to see positive results of these efforts sooner than expected, which would add more value to the company and open more doors for increased revenue generation.

Gillis believes that Google Inc. (NASDAQ:GOOGL)’s decline in Click costs may stop soon and it would contribute to the company’s predicted market cap of $1 trillion. He expects to see positive results in terms of Click costs by next fall. According to Gillis Google Inc. (NASDAQ:GOOGL)’s next 5 years will have quite an impact on the company’s overall outlook.

Google Inc. (NASDAQ:GOOGL) started off today’s session at $555.13 and at 10:53 AM EDT was trading at $548.37. The stock’s range over 52 weeks has been between 433.34 and 615.42.