However, strides being made by the web portal are noteworthy. As CEO of Yahoo!, Marissa Mayers has made it clear that she wants to help grow ad revenues by offering video streaming services. Thus her entry into the bidding war for Hulu with an offer ranging between $600 million and $800 million.
In what could be considered her biggest coup yet in video streaming was usurping the rights to air Saturday Night Live reruns. In April, Yahoo! Inc. (NASDAQ:YHOO) announced that it had partnered to bring SNL archives from 1974 through 2013. Hulu and NBC.com previously held the exclusive rights. The fact that Yahoo! managed to wrangle such a catch from these heavyweights, which clearly had an edge considering how popular they are, is impressive. More coups like this could very well help close the competition gap between Google Inc (NASDAQ:GOOG) and Yahoo! Inc. (NASDAQ:YHOO).
Signs point to YouTube making headway in revenue growth through mobile video-ad sales. However, when it comes to display ads in general Google has its hands full with Facebook Inc (NASDAQ:FB). An advantage Facebook Inc (NASDAQ:FB) has over Google is its increasing growth with mobile advertising. This can be seen in how much market share Facebook Inc (NASDAQ:FB) carved out in mobile ad display last year versus Google. It snapped up 18.4% of the market compared to Google’s 17%. That’s small, but in this high stakes game, it is still too close for comfort.
The bottom line
There’s no question that Google Inc (NASDAQ:GOOG) is a force to be reckoned with in just about every tech space there is. Its main focus will continue to be on its bread and butter search engine business due to the ad revenues it generates. However, by entering several other businesses, Google is furthering the reach of its brand and the number of consumers that are directed to its properties who may inevitably click on an ad.
So, I think it’s fair to say that Google’s $1,000 price targets from analysts are more than feasible. At the time of writing (during intraday trading on Tuesday), it was within $4 dollar of breaking through $900 a share…again.
The article Why the Analysts Are Right on Their $1000 Price Target originally appeared on Fool.com and is written by Tedra DeSue.
Tedra DeSue has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook and Google. Tedra is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
