At Google’s analyst day two years ago, CEO Eric Schmidt made a clever remark about Google laying the foundation to become “a hundred-billion dollar company.” He wouldn’t clarify whether he was referring to a “$100 billion market cap,” which Google had already attained, or “$100 billion of revenue.”
In Ken Auletta’s recent New Yorker article, Schmidt was good enough to clarify the company’s ambitions: He means $100 billion in revenue. And what engine will drive Google there? Mobile phones:
There are almost three billion mobile phones worldwide, and Schmidt expects a billion more in the next four years. If the phones use Google software to sell advertising, Schmidt thinks that over time it is “mathematically possible for Google to become a one-hundred-billion-dollar corporation.” Two vital markets are television, which is “easily attainable,” and mobile phones, which are “more personable” and more “targetable” than most advertising. To achieve this goal, Google would need to claim 10 per cent of all global advertising, which now amounts to just under a trillion dollars.
For perspective, Google did about $16 billion in revenue last year. $100 billion would mean increasing the company’s size by a mere 6X.
Still think it’s a crazy idea that Google’s stock could eventually hit $2,000 a share?
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