Even though most of big tech has had a rocky year, shares of
have been powering ahead. The search giant is now above
$870/share, marking a nearly 40% gain over the past 12 month
This is in stark contrast to many other names in the
technology world, such as
or even the broad
technology sector (
in the same time frame, as all of these options have paled in
comparison to Google's return as of late. Thanks to this, many
are now looking to GOOG as the leader of the technology world and
the best hope for growth among the tech giants.
However, it is worth noting that GOOG could be facing some
headwinds in the near future. Some analysts are worried that
search revenue could be in trouble-as more
consumers just buy
instead of searching for a product on Google-and that other
avenues haven't really paid off yet for the company.
After all, the company is trading at a somewhat lofty forward
PE of 22, which seems a bit high for a nearly $300 billion
company that already has a stranglehold on its only real market.
Analysts are also mixed on the prospects in the near term, as the
stock has a Zacks Rank #3 (Hold) with EPS growth of just 2%
predicted for this quarter.
Change on the horizon?
Clearly if GOOG is going to continue to surge it will need to
find new ways to grow beyond desktop search and android phone
adoption. One such way that many are banking on is via Google
Google glass is basically a wearable computing device
that one utilizes like glasses. It will run on an android
operating system and allow users to access a number of Google
applications, take videos and pictures, and run third-party apps
Although the product is still in development, many analysts
and journalists have already developed strong opinions about the
product, its likely sales figures, and the widespread adoption of
On the high side, some are terming Glass as a gamechanging
product that could sell as many as
6.6 million units a year in 2016
. Meanwhile, others are much less optimistic, declaring that '
nobody likes Google Glass
' and that the sales estimates will fall well short of
Personally, I am more apt to believe in the high side
estimates and that Google Glass will be a key part of many
consumers' technology lives, and a major part of Google's growth
going forward. The possible uses for the
product are limitless
, with potential applications in industries like the military,
health care, and education
just to name a few
Still, many remain deeply skeptical of the product, predicting
that its adoption will be slowed by people not wanting to look
'stupid' wearing them (kind of like how some view those who use
Bluetooth headsets). Or that Glass will basically be a '
' redux; a technological innovation billed as the next big thing
that only has found its way into niche markets.
But what do you think? Is Google Glass going to be a
transformative product and a key aspect of GOOG's lineup, or a
And, does this product change how you feel about Google's
stock going forward?
Let us know in the comments below!
Want the latest recommendations from Zacks Investment
Research? Today, you can download
7 Best Stocks for the Next 30 Days
Click to get this free report >>
APPLE INC (AAPL): Free Stock Analysis Report
AMAZON.COM INC (AMZN): Free Stock Analysis
GOOGLE INC-CL A (GOOG): Free Stock Analysis
MICROSOFT CORP (MSFT): Free Stock Analysis
SPDR-TECH SELS (XLK): ETF Research Reports
To read this article on Zacks.com click here.