Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

The Only Way That Google Inc (GOOG) Could Go Is Up: Apple Inc. (AAPL), Nokia Corporation (ADR) (NOK)

There has been a lot of debate as to whether Google Inc (NASDAQ:GOOG)’s share price will continue trending upward moving forward. Pundits have clearly been divided over the issue, with some of them arguing for the idea and some of them arguing against it. The latter contend that Google will ultimately go the Apple Inc. (NASDAQ:AAPL) way, up then down. At first, I was inclined to believe that the argument against Google’s continued upward trajectory held weight. Nonetheless, a further probe has led me in the opposite direction; the only way that Google could go is up.

In order to put this argument into perspective, it is important to take a look at Google Inc (NASDAQ:GOOG) a year ago. At the onset of 2012, its stock was trading at around $600. As of this writing however, it is trading at around $800, a 30 percent year over year gain. The fact that the stock has gained so much in just over a year suggests that something was holding investors back in 2012 and 2011. After taking a skewed look at the industry at large, I came to the conclusion that investors were not sure about mobile monetization in 2012 and 2011.

Google Inc (NASDAQ:GOOG)Google’s share price gain coincides with notable improvement in mobile monetization. Figures from the tech titan’s recent earnings report show that its annual mobile run-rate increased to $8 billion in Q3 fiscal 2012 from $2.5 billion a year earlier. This increase not only signals a 220 percent gain but it also tells a story of a company that is pushing beyond its limits as far as mobile monetization is concerned.

Android market share a good sign for future mobile monetization efforts

In as much as Google Inc (NASDAQ:GOOG) has gained with regard to mobile monetization, I am disposed to believe that it can do a lot to improve. In fact, this seemingly huge gain in mobile monetization may be the onset of a lasting trend.

Why do I say this? All along, Google has used Android to latch onto the mobile revolution. Unlike its core competitor Apple Inc. (NASDAQ:AAPL), which primarily depends on actual device sales, Google depends on sales from different handset makers- from HTC to Samsung, the list is populous.

This approach has allowed its Android platform to secure a bigger market share in the global market relative to Apple’s iOS.

The chart below offers deeper insight

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.