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01.11.06
Google To Reach $600?
 By
Andy Beal
Piper Jaffray analyst Safa Rashtchy predicts Google will reach $600 this year.
Why such a high target?
Rashtchy points to the company's ability to continually dominate the paid-search
business. In 2005, he estimates that Google accounted for 64% of the $10 billion
generated in global search sales. On a net basis, or excluding what Google pays
out to its distribution partners, the search firm is estimated to generate $4
billion in revenue for all of 2005.
This year, the analyst expects Google's net sales will grow by 58% vs. an overall
paid-search market growth of 41%. Analysts currently predict Google will grow
net sales by 60% this year, so Rashtchy is in line.
He also expects Google to grow faster than the entire industry over the next five
years, and therefore gain market share. He expects the industry to grow by 37%
compounded annually through 2010. At that point, Rashtchy estimates that the paid-search
business will be $33 billion.
Via MarketWatch.
About the Author:
Andy Beal is President & CEO of Fortune
Interactive a full-service interactive marketing agency specializing in search
marketing and blog marketing. Considered one of the world's most respected interactive
and search engine marketing experts, Andy has worked with many Fortune 1000 companies
such as Motorola, CitiFinancial, Lowes, Alaska Air, DeWALT, NBC and Experian.
Reach him at andy.beal@gmail.com. |
