Google Inc Set To Leverage Mobile Revolution: UBS

UBS Global Research published a report on Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) on June 25th, and analysts Eric J. Sheridan, Vishal J. Patel and Timothy E. Chiodo rate the stock a Buy with a 12-month price target of $665. The analysts argue Google offers “the greatest exposure to themes of Internet access growth and the global adoption of mobile computing.”

Google new logo

Roadmap for Android/Chrome

The report noted that in this week’s annual I/O developer conference hosted by Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL), the firm introduced a roadmap for Android/Chrome honing in on the key themes of contextually aware, voice-enabled, seamless and mobile-first. According to the UBS analysts, the two primary themes in the roadmap are: 1) a less fragmented Android ecosystem to add impetus to Google’s global growth in mobile OS adoption; 2) extending the Android/Chrome ecosystem into the categories of wearables, health care, in-home TV viewing and autos, as well as a wider adoption of Chrome and Google Apps in the education and enterprise segments.

Platform adoption statistics

Google revenues

Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) also disclosed new, very impressive statistics on platform adoption to combat recent naysayers at the I/O conference. Android MAUs have surpassed 1 billion (vs. 538mm last year) highlighting its massive scale compared to other operating systems. Furthermore, Android tablets have reached 62% market share (compared to just 46% last year), and Android tablet app installs increased by a scintillating 236% year over year, clearly answering the thought that the tablet category has already been lost.

The company also pointed out that 93% of Android users are on the latest version of Google Play Services and also mentioned that more than $5 billion has been paid to Google Play developers since last year (250% growth).

Google moving deeper into consumer and enterprise

Sheridan et al. are also excited about a number of upcoming key product/initiative launches which extend the¬†Google Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) computing experience deeper into day-to-day life. According to the report, they were “most impressed with: a) the wearables category; b) the Android TV & Chromecast improvements (putting Google Play & YouTube in direct competition for in-home viewing choices); c) Drive for Work ($10/month pricing for unlimited enterprise storage)–a direct shot at cloud/enterprise computing competition; & d) Android “L” developer release and a unified platform for the production of low cost Android devices to drive penetration (Android One).”