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| Fellow Investor, Google (Nasdaq: GOOG) killed it last night. Earnings growth was an amazing 36% over last year. This morning, analysts are scrambling to get their new price targets for Google out.
UBS is forecasting that Google will hit $800 a share.
How did Google achieve such amazing growth?
Well, for starters, 550,000 phones with Google's Android operating system were activated a day during the quarter. That's how Android currently boasts a 37% market share, compared to Apple's 27%.
Plus, the Android store now has 250,000 apps and has 6 billion downloads to date, double from any previous months.
Google's Facebook challenger, Google+, has signed up 10 million users since it was launched a couple weeks ago.
The growth in smart phone use, like Android phones or Apple's (Nasdaq: AAPL) has caused wireless network providers like AT&T (NYSE: T) and Verizon (NYSE: VZ) to abandon unlimited data plans. The amount of traffic that's running on their networks is mind-boggling, and it's expected to grow 3,000% in the next 5 years.
The wireless carriers have to make network upgrades to handle the continued surge in traffic. And with the current flat-rate plans, they are not making enough money to do it. So they are adopting tiered data plans to help pay for network upgrades in order to handle all the traffic.
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| | US Markets - July 14 Close | Dow Jones | 12,437.12 | -54.5 | -0.44% | | S&P 500 | 1,317.72 | -8.85 | -0.67% | | Nasdaq | 2,762.67 | 34.25 | 1.22% | | Currencies | EUR/USD | | 1.4105 | | | USD/JPY | | 79.095 | | | GBP/USD | | 1.6108 | | | | Recent issues of Daily Profit
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