Even though Google doesn’t make money directly from sales of Android devices, it does benefit financially when more mobile subscribers use its online services and when they download apps from its Google Play app store. Barron’s flags a note from Citigroup analyst Mark May, who projects Google Play revenues will have compounded annual growth of 43% over the next four years and will grow from $1.3 billion in 2013 to $5.2 billion in 2017. Things look even better for Google when you factor in app-related ads, which May thinks will help Google Play generate a “$3.2 billion in total revenue contribution in 2014 and $7.2 billion in 2017.” In part because of this increased Google Play revenue, May raises his price target on Google shares from $1,025 all the way up to $1,190.
