Google Glass (GOOG) Could be Worth $3B+ in Five Years

Google's (Nasdaq: GOOG) wearable computer -- Google Glass -- might seem unusual now, but it won't be by 2017.

At least, according to one SunTrust Robinson Humphrey analyst. Robert Peck thinks that, even with zero profit margin, Google Glass could be a $3 billion or more business for Google by then. That's because Google would benefit from the additional searches, better targeting to sell advertisers, and more app sales.

Peck also thinks the price will drop to $349 by then. His estimate includes an "installed user base of 64,500," according to AllThingsD, which means each user would need to generate about $50,000 per year in revenue...a rather large number.

Estimates also take into consideration that users do two more searches per day than the current rate and ad prices go up as data improves.

Pack's main points is that Google Glass could be transformative because users will be able to perform functions with the device while keeping their head up and hands free.

Shares of Google closed 1.3 percent higher Wednesday.

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