Friday, February 11, 2005

Google: $1 Trillion?

on Motley Fool

Sure, shake your head. But what does $1 trillion really mean in terms of future stock price appreciation? About 16% annually for the next 20 years. Find that hard to believe? I don't. Microsoft has annualized around 35% per year since 1986, most of that growth coming in the earliest days. Outrageous positioning? You better believe it. Google is quite simply the most dominant company of the day. Their success and dominance is right here in front of our faces, and yet the popular media (and perhaps even some fellow Fools) are calling it overpriced or "priced for perfection."

Why am I so enthusiastic about Google's future? There are lots of reasons to be psyched about this company, but the No. 1 reason is that Google is an economy unto itself. We are truly living in The Google Economy. What does this mean? Quite simply, Google creates value for so many people that failure simply isn't an option.

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