Google is definitely hiring. "We're hiring a couple thousand people over the next year," he said.
And looking at the White House summit he said, "The basic message today is that with small business – which is the primary source of jobs – we need to figure out the loan problem. The banks aren’t really lending to them and anything that the government can do to accelerate that, needs to happen right now."
Schmidt told us cloud computing is the centerpiece of Google's 2010 strategy.
"It’s a new model. You basically put all your information on servers and you have fast networks and lots of different kinds of personal computers and mobile phones that can use the applications... it's a powerful model and it's where the industry is going. It is the centerpiece of our 2010 strategy."
Schmidt isn't terribly excited by the idea of implementing a second stimulus to ignite hiring.
"What they really need to do is change the tax incentives so that the private sector does the hiring," he said.
Piper Jaffray analyst Gene Munster today said in a note, that by 2016, 78% of Google's revenue will still be from search. Schmidt agreed.
"My guess is that advertising and search ads will be the lion’s share of our business for quite a long time," he said. "The reason is, it's such a large part of our business and it continues to grow quite well."
"Historically it’s been Microsoft and Yahoo! and I think it will be for quite some time," he said.
But when he goes to sleep at night it isn't Yahoo or Microsoft that he worries about.
"I worry about the next entrepreneurial company that will take cloud computing into an area that we have not anticipated. (I worry about) something that we don’t foresee that could really take off. There's evidence that a lot of new companies could be built."
In the same note mentioned above Gene Munster raised his 12-month price target on Google to $700 per share and said eventually it will be over $1000... but not until in 2015.
We asked Schmidt about the call and he told us, "we don’t comment on our stock price for good reason."
What’s the trade?
I think Google has a lot of upside in the near-term, speculate Joe Terranova.
If the economic situation continues to improve then I think Google could go to $1000, but that’s hard to justify right now.
What do you think? We want to know!
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Trader disclosure: On December 3rd, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (MSFT), (NUE), (BTU); Najarian Owns (AAPL) Call Spread; Najarian Owns ((BAC) Call Spread; Najarian Owns (INTC) & Short (INTC) Calls; Najarian Owns (DELL) Calls; Najarian Owns (TJX); Najarian Owns (TXN); Najarian Owns (FCX) Call Spread; Najarian Owns (INTC) & (INTC) Calls; Najarian Owns (UAUA) Call Spread
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