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Investing.com - Alphabet (NASDAQ:GOOGL) stock rose 7% in after-hours trading following Judge Mehta’s ruling on the Google Search remedy case. The stock, which has gained nearly 27% over the past six months, is trading close to its 52-week high of $214.65. According to InvestingPro analysis, Alphabet currently shows strong financial health metrics with an overall "GREAT" rating.
The 230-page Memorandum Opinion delivered at the beginning of September did not include the feared "killer one-two punch" of forcing Google to sell off Chrome or preventing the company from paying for distribution, according to Bernstein SocGen Group.
Bernstein analyst Mark Shmulik maintained a Market Perform rating on Alphabet with a $210.00 price target, noting that while the ruling creates some near-term risks, the company is "probably easier to own today than yesterday."
The remedy extends exclusivity provisions to AI chatbots, potentially creating an opening for OpenAI, while also opening parts of Google’s tech stack and enforcing syndicate solutions that could strengthen competitors like Apple and OpenAI.
The ruling also included comments suggesting GenAI searches overlap with web search, which Bernstein believes may increase Google’s chances of overturning the verdict on appeal.
In other recent news, Alphabet has seen a series of analyst updates following developments in its ongoing legal matters. Needham raised its price target for Alphabet to $260, maintaining a Buy rating, after favorable preliminary remedies were released in the Department of Justice’s case against Alphabet. Similarly, Wedbush increased its price target to $245, citing reduced regulatory risks and a belief that Alphabet’s discount relative to peers is unwarranted. Rosenblatt also adjusted its price target upward to $224, maintaining a Neutral rating, based on reduced near-term risks following a search remedy ruling.
Goldman Sachs reiterated its Buy rating with a $234 price target, analyzing the potential impacts of enforced remedies in the search antitrust case and maintaining a positive outlook on Alphabet shares over the medium to long term. These updates reflect a broader sentiment among analysts that recent legal developments could influence Alphabet’s market positioning. The adjustments in price targets by these firms indicate a cautious optimism regarding Alphabet’s future amid regulatory challenges.
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