Google’s Stock Good for $630 as Nexus Anticipation Grows

With anticipation over the Samsung Google Nexus phone rising, Google (NASDAQ:GOOG) is inching back to post Q2 stock levels. The stock was helped further as Greece decided to scrap the referendum on austerity measures, ^[1] which had pulled down markets globally in the last few days.

See our full analysis for Google’s stock

But Apple’s Patent Threat Might Loom On the Nexus

The warm reception to the Google Nexus phone should have certainly raised optimism as Android seems set to capture an even bigger share in the mobile OS market. Both Google and Samsung have left no stone unturned for their first Ice Cream Sandwich-equipped phone, even possibly delaying the launch to make sure that the phone does not run into any patent troubles. ^[2] As a pre-emptive warning, Samsung has filed its own injuction against the iPhone 4S, hoping to ward off Apple (NASDAQ:AAPL).

That is however, easier said than done. Given the number of lawsuits flying around in the mobile space, Apple will follow the Nexus very, very closely. Samsung’s Galaxy tablet and S-II phones have already faced injunctions and even import bans in Europe, and we expect that patent threats to the Nexus are the biggest threat to Google’s stock in the short-term.

We have a price estimate near $628 for Google’s stock, which is around 7% above the current market price.

Understand How a Company’s Products Impact its Stock Price at Trefis

1. Washington Post: Dow Average Soars 208 Points After Greece Scraps Referendum on Austerity Measures [↩]
2. Apple Insider: Samsung’s New galaxy Nexus designed to avoid infringing Apple patents [↩]