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.