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Investing.com - BofA Securities raised its price target on Alphabet (NASDAQ:GOOG) to $252.00 from $217.00 on Wednesday, while maintaining a Buy rating following the court’s remedy ruling in Google’s search antitrust case. The tech giant, currently trading at $211.99 with a market capitalization of $2.56 trillion, has seen 30 analysts revise their earnings estimates upward for the upcoming period.
The court’s decision represents a significant win for Google on several fronts, according to BofA’s analysis. Most notably, the ruling does not require Google to divest its Chrome browser, which had been one of the Department of Justice’s key requests. According to InvestingPro data, Alphabet maintains strong financial health with a "GREAT" overall score, suggesting robust operational stability. Want deeper insights? InvestingPro offers 16 additional exclusive tips for Alphabet, along with comprehensive financial analysis.
The court also delivered a favorable outcome regarding Traffic Acquisition Costs (TAC), allowing Google to continue making payments for default placement, though exclusive arrangements will no longer be permitted. This represents a positive development compared to the potential complete elimination of TAC payments that had been requested. The company’s strong revenue growth of 13.13% and P/E ratio of 22.22 reflect its market dominance and earning potential.
On data sharing requirements, BofA views the ruling as "neutral to favorable" since Google will only need to conduct one-time sharing of search and user data, without including advertising data. This limited scope reduces potential competitive impact on Google’s core business.
The ruling does impose new search syndication requirements, which BofA considers a "minor negative," though the analyst notes that syndication is not a new concept for Google’s business model.
In other recent news, Google has announced a significant investment of $9 billion in Virginia, aimed at expanding its cloud and artificial intelligence infrastructure through 2026. This investment will include the establishment of a new data center in Chesterfield County and collaborations with local partners to enhance energy capacity through efficiency programs and innovative technologies. Meanwhile, Waymo, a subsidiary of Google, plans to launch its autonomous vehicle service in Denver this fall, utilizing a mixed fleet of Jaguar I-PACE and Zeekr RT vehicles equipped with its latest technology. In another development, ByteDance is initiating a new employee share buyback program, valuing the company at over $330 billion. This program offers current employees $200.41 per share, marking a 5.5% increase from the previous valuation. Additionally, European leaders, including German Chancellor Friedrich Merz and French President Emmanuel Macron, have reiterated their commitment to maintaining the EU’s digital market regulations. This stance follows criticism from U.S. President Donald Trump, who threatened additional tariffs on countries with digital regulations he perceives as discriminatory against American technology. These recent developments highlight ongoing investments and regulatory stances within the tech industry.
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