Google Inc. (GOOG)’s Making $800 Look Good

Besides, even with higher TAC, Google Inc. (NASDAQ:GOOG) still managed to increase paid clicks by 24%. The company’s strategic planning and execution continues to show that it remains focused on one thing — increasing shareholder value. And as long as Google Inc. (NASDAQ:GOOG) continues to dominate mobile, the stock is going to continue to rise.

Google Inc. (NASDAQ:GOOG)’s still far from perfect
The company operates a sound business, but Google Inc. (NASDAQ:GOOG)’s far from flawless. And that’s the scary part. Just imagine where the stock would be today if Google Inc. (NASDAQ:GOOG) could eliminate some nagging operational issues. Certainly, Motorola comes to mind. For instance, Google Inc. (NASDAQ:GOOG) posted a 36% year-over-year increase in revenue despite a 56% drop in revenue from Motorola.

Likewise, there was a 6% drop in cost-per-click. This is the metric that tracks how much advertisers pay Google Inc. (NASDAQ:GOOG). And Google Inc. (NASDAQ:GOOG) still has to deal with the 42% increase in operating expenses. Yet despite these costs, net income still managed to jump 7%. In other words, this is far from a mature company. And Google Inc. (NASDAQ:GOOG) is not even close to reaching its operational excellence. In a recent article, I said the stock should approach $800 to $830 by the second half of this year. Google Inc. (NASDAQ:GOOG) had other plans.

What of the stock?
I think I’ve answered this question already, but I don’t mind repeating: it’s still cheap. The best way to evaluate Google Inc. (NASDAQ:GOOG)’s stock price is on a five-year basis. Even if shares were to drop to $700 after you buy it today, it wouldn’t mean anything to the long-term growth prospects or the underlying fundamentals that Google Inc. (NASDAQ:GOOG) presents today. While $800 seems like a high price tag, Google Inc. (NASDAQ:GOOG) wears it well.

The article Google’s Making $800 Look Good originally appeared on Fool.com.

Fool contributor Richard Saintvilus owns shares of Apple. The Motley Fool recommends Amazon.com, Apple, Facebook, and Google. The Motley Fool owns shares of Amazon.com, Apple, Facebook, and Google.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.