With shares of Google (GOOG) up more than 28% so far this year and the stock printing the tape above $900 on Wednesday for the first time ever, raising the search giant’s market cap beyond the $300 billion threshold, many investors are fantasizing about a quadruple digit stock price. In fact, Google $1,000 is now being very widely talked about, and it appears the ticker has a legitimate shot of hitting that target after crossing over the $900 level.
RW Baird analyst Colin Sebastian raised his price target on Google to $1,025 from $830 Wednesday morning amid growing optimism about several elements of the company’s business, including YouTube.
When asked during a CNBC interview (posted below) to comment whether he agreed with Morgan Stanley‘s (MS) recent suggestion that YouTube could actually capture 6% of the worldwide television ads spent and therefore the company would be worth a huge amount money, Sebastian said he has quantified what he thinks the potential impact is as well from YouTube.
“We think within a short period of time YouTube will generate up to $5 billion in revenue for Google and we already believe that we’re seeing some of that shift away from TV advertising to the Web and YouTube is the leading video site and trends there are on fire.”
Sebastian also explains why Google is still far from being the most expensive internet play.