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Google,founded in 1998,is a technology company which maintains a host of on line web sites and on line search engine Google. Google has become the major player,dwarfing Yahoo and all the other on line content sites. Google has grown organically,but major gains will be made through acquisitions. Google acquired You Tube last year and they currently are waiting on FTC approval on Double Click. They are also considered a probable high bidder on the wireless spectrum to provide mobile internet content that the FTC is currently auctioning.
Googles 4th quarter 2007 revenue increased 51% to $4.83 billion compared to same quarter a year ago.The 4th quarter 2007 netted Google $1.21 billion or $ 3.79 a share. Googles 4th quarter international revenue increased from 44% to 48 % of total income or $2.32 billion. Google is projected to grow revenue by over 36 % over the next 5 years. Google has a current PE of 32 with a forward projected one year PE of 17.
Future earnings will be enhanced by acquisitions such as You Tube and Double Click. The international market has tremendous potential and should improve revenue by 5 to 10 % per year for years to come.In December 2007,Google reported a sharp increase in revenue from Apple I-phone mobile on line usage. If Google is the high bidder on the FTC auction for mobile on line access,it will be a great revenue source for the future. Double Click should be another revenue source by the latter part of 2008.
Is Google a good investment? I would have to say yes. I think Google can increase revenue by at least 40 % for at least the next 3-5 years. The international market has just begun to emerge. The acquisitions will begin to produce this year.And,if Google is the high bidder on mobile wireless internet provider,this may be the biggest income source in the future.
The only limit on future Google earnings is the FTC and other governing bodys. The future is looking very bright for Google and don't bet against Larry and Sergey!.
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