Can Google Inc (GOOG)’s Run Continue?

Could Google Inc (NASDAQ:GOOG) topple payment giant eBay Inc (NASDAQ:EBAY)? Possibly.

Google will be rolling out its service via Gmail and Android quickly giving the company access to over 400 million users. That’s almost four times larger than PayPal’s 120 million customers.

Google may also be able to offer the service for free, focusing instead on exploiting valuable transaction data. A price war could put a major crimp in eBay Inc (NASDAQ:EBAY)’s margins if Google Wallet catches on.

Long shots

And then of course there’re Google’s long shot projects which could spell new multi-billion dollar revenue opportunities.

Fiber: The answer to the slow internet connection, Google Fiber runs at 1GB per second or roughly 100 times faster than the average U.S. internet speed. Google could see big profits as the project rolls out nationwide.

Glass: Still in its infancy, Glass has just been released to the developer community so it’s still unclear how big the marketplace could be or the technology’s potential. But this innovation puts Google Inc (NASDAQ:GOOG) at the forefront of the wearable technology trend.

Foolish bottom line

In addition, Google’s valuation isn’t extraordinarily expensive. Shares trade at 16 times forward earning. With profits growing at a mid-teen clip, the stock is valued at a reasonable 1.1 PEG ratio. This is hardly in nosebleed territory.

The article Can Google’s Run Continue? originally appeared on Fool.com and is written by Robert Baillieul.

Robert Baillieul has no position in any stocks mentioned. The Motley Fool recommends Apple, eBay, and Google. The Motley Fool owns shares of Apple, eBay, and Google. Robert is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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