There has also been a nagging concern that Android, though it's the dominant mobile operating system, would not make any money. Perhaps that line of thinking is wrong, though, and Android can indeed be profitable for Google. Google has become what Apple (AAPL - Get Report) was in 2012, something of a Wall Street darling. The stock has gained more than 12% this year, fueled by investor optimism about the innovation going on in Mountain View, Calif. Google Glass is one such innovation, casting Google in a positive light. "For years, Google has been perceived as investing in products that never seem to come to market," analyst Brian Sozzi wrote, in an email. "But, with pictures of a self-driving car floating around the Internet, and Google Glass set for release, it's very apparent years of investment are about to be unleashed into the everyday environment."
Kirjner believes most of the upside in Google comes from mobile, especially YouTube, which he calls "an underappreciated asset." With people spending more and more time watching video on the Internet, YouTube's growth is not yet fully appreciated by the market. Kirjner believes that YouTube is already a multi-billion dollar business with strong growth and good operating margins.