Google Has A Clear Path To A $1 Trillion Valuation: Analyst

October 12, 2017 - Written By Dominik Bosnjak

Google’s path toward a $1 trillion valuation is “the clearest” of any other company in the world, Jefferies Technology Team Managing Director Brent Thill wrote in a recent note, as reported by Business Insider. Mr. Thill praised Google’s recent investments in cloud computing, mobile devices, artificial intelligence, and other industry segments which are projected to be the main growth engines in the tech sector going forward, suggesting that the company’s strategic investments and partnerships allowed it to set up a solid base for strengthening its existing market position and developing promising new products and services in the near and medium term, all of which are bound to positively reflect on its market valuation which currently sits at around $650 billion when all of Alphabet’s assets are combined.

Only Apple can compete with Google in terms of seamless integration of software and hardware, the analyst believes, indicating how Google’s large focus on AI technologies and applications will allow it a major competitive edge for the foreseeable future, consequently providing the Alphabet-owned company with the tools to deliver unmatched experiences. Mr. Thill also downplayed the regulatory concerns regarding Google which arose after the firm was served with a historic antitrust fine in Europe, with the European Commission ordering it to pay the equivalent of $2.7 billion for what it deemed was monopolistic behavior constituting the abuse of the dominant market position of Google Search for the purpose of promoting Google Shopping at the direct expense of its rivals. According to Jefferies analyst, the legal battle between Google and the EU is only just beginning and will take a long time before it reaches a definitive end and possibly affects the company’s commercial performance, essentially being a non-issue for the time being.

The Mountain View, California-based firm isn’t the only one that has massive potential to become the first entity to break the $1 trillion market cap, with some industry watchers previously naming Amazon as the top candidate for succeeding in that endeavor. Both companies are presently diversifying their portfolios to a large degree and are integrating AI solutions and automation into all aspects of their operations as their market valuations keep rising, with their stock already breaking the $1,000 mark.