Google's Q3 revenue will jump over 20 percent, Jordan Rohan, analyst at Stifel, Nicolaus & Co. told CNBC ahead of the company's earnings on Thursday.
"We're ahead of the Street," he said. "That ties to $5.4 billion in net revenues. Now that's a sequential number. So on a year over year basis, that's over 20 percent growth."
At that scale, he said, Google is one of few companies that can make that kind of earnings story happen.
Rohan recently upped his price target for Google stock to $600 from $560.
Google has widened its US search lead over rival Yahoo, whose stock has come under pressure over the last 12 months, he pointed out.
Yahoo is making headlines recently on news that several private equity firms and media companies may be interested in buying out the company. In the event a merger materializes, Rohan suggested it could result in the sale of Yahoo's stake in Alibaba.
"There has been heat on Carol Bartz at Yahoo," he said. "... Yahoo is best off hemming and hawing and waiting, because every day that goes by there's more value created for these Chinese assets."
"The other key thing about Yahoo is someone is going to have to come up with the cash to help Alibaba buy that stake back if that's the plan that's out there," he said. "The cash wouldn't be at a pre-IPO evaluation. Yahoo has in its mind that Alibaba is an extraordinarily valuable asset because Taobao (an associated online marketplace) will go public someday."
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