Google’s (NASDAQ:GOOG) Orkut is a free social networking service, similar to Facebook and MySpace, where users can connect with friends and share content in the form of photos and videos. Orkut is especially popular in Brazil and India. Orkut makes money from advertising displayed on its pages.
How much of Google’s value do you think comes from Orkut?
A. 0.5%
B. 2%
C. 4%
D. 9%
E. 17%
Make a selection above to see the answer.
A Clue: Orkut Revenue per Page View
We estimate that Orkut earns about 30 cents for every 1,000 page views on orkut.com. In comparison, we estimate that Google earns about $35 for every 1,000 searches conducted on google.com and that Google’s search business constitutes about 68% of the $703 Trefis price estimate for Google’s stock.
You can explore and modify our forecasts for some of the other factors that influence the value of Google’s Search and Orkut businesses:
For additional analysis and forecasts, here is our complete model for Google’s stock.
