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Investing.com - Alphabet (NASDAQ:GOOGL), the $2.56 trillion tech giant trading near its 52-week high of $214.65, saw its shares rise 7% in after-hours trading following what analysts described as a favorable antitrust remedy proposal from DC District Court Judge Mehta. According to InvestingPro data, the company maintains excellent financial health with a "GREAT" overall rating.
Piper Sandler maintained its Overweight rating on the tech giant with a price target of $220.00, viewing the court’s decision as a positive outcome for the company. This aligns with the broader analyst consensus, as InvestingPro reveals 30 analysts have recently revised their earnings expectations upward.
The judge’s proposal appeared to reject the plaintiffs’ structural remedies, including potential Chrome and Android divestitures and bans on payments to distribution partners, according to Piper Sandler’s analysis.
Instead, Google will likely face less severe behavioral remedies, such as requirements to share certain data with competitors and prohibitions on competitive exclusions, while leaving much of its operations and business practices intact.
Piper Sandler noted that the market reaction appropriately reflected the positive outcome for Alphabet, which avoided a "structural remedy or wholesale rewiring of the distribution/OEM economic order," and suggested the ruling might also have positive implications for Reddit and Opera.
In other recent news, Alphabet has been at the center of several significant developments. The company received a favorable ruling in the Google Search remedy case, as Judge Mehta’s decision avoided severe penalties like selling off Chrome or restricting distribution payments. Following this ruling, several analyst firms have adjusted their outlook on Alphabet. Rosenblatt raised its price target for Alphabet to $224, citing reduced near-term risks but maintaining a Neutral rating due to long-term competitive challenges. Needham increased its price target to $260, maintaining a Buy rating, influenced by favorable remedies in the Department of Justice case. Wedbush also raised its target to $245, with an Outperform rating, highlighting reduced regulatory risks and potential for multiple expansion. These updates reflect a broader positive sentiment among analysts regarding Alphabet’s regulatory environment and future prospects.
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