The following is a guest post by a fellow investor mobile guru whose interest lie within the mobile space, biotech, and precious metals.

It was not long ago that Google (GOOG) told us that their Mobile business was at a $1B/year revenue run rate. After this quarter earnings announcement it is not hard to imagine that number is going to be 2-3 times that level next year. In 2010, 22.5M Android phones were generating $133M in revenue or almost $6/phone and now there are 135M Android phones and at $6/phone brings revenue total to almost $1B and activations are growing at an amazing 550,000 per day. This is an increase of 15M/month and another $100M in revenue or adding $1B in revenue per year. There is a very good chance that per phone revenue generation will continue to grow which indicates these numbers will actually be much higher. Add in the fact that traffic on the AdMob network is up more than 3.5 times in the past year, giving another indicator that mobile is going absolutely through the roof at Google.

Despite large move today, GOOG still in lengthy base building pattern.

There is a reason that former Google CEO Eric Schmidt had been quoted saying ‘Mobile First’, but his latest version of his ‘mobile mobile mobile’ mantra, that he shares with all partners and companies interested in mobile is: “Put your best people on mobile.” A recent article illustrates these points All the Numbers, All the Facts on Mobile the Trillion-Dollar Industry. Why is Google saying: Put your Best People on Mobile? , discusses the true growth that is taking place in mobile devices which in turn will drive mobile to be a bigger player in advertising than today’s standard desk top internet connection.

Another area to look at for growth is in the amount of hiring a company has been doing. Google in the last quarter increased employees from 26,316 to 28.768. Another company, Augme Technologies (AUGT), that recently reported a 320% revenue increase in its latest quarter has also been ramping up employment. From last year they have increased employee count from 15 to 55 full time employees. They have also opened a center of excellence in Atlanta and are opening a new office in the Midwest.

Two of my other top Mobile plays for 2011, as first identified in this article Top 4 Mobile Acquisition Picks for 2011, have also been on a tear lately. VirnetX (VHC) recently hit new highs up approximately 300% since first identified last November. It has been driven by the realization that Intellectual Property is to the Mobile market as gold is to the monetary system. The other company is GLU Mobile (GLUU) which hit a new high just the other day on the continued roll out its mobile games. Obviously the continued proliferation of smart mobile handsets and users will only accelerate their future revenues and earnings.

2 Responses to “Google Proves Mobile Growth is for Real”

  1. brian Says:

    exciting names listed here. finally had some time recently to look at the quarters. soda is in another industry but another smaller company i like. (don’t own it). thanks for all the info on the site!

  2. jeff pierce Says:

    Sodastream has had a great run but it’s overbought now. Would be interested at support.

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