Apple plans to launch AI-powered search tool next year - Bloomberg
Investing.com - BMO Capital maintained its Outperform rating and $225.00 price target on Alphabet (NASDAQ:GOOGL) following a U.S. District Court remedy decision in the Search antitrust trial. The tech giant, currently valued at $2.56 trillion, has demonstrated robust financial health with a 13% year-over-year revenue growth. According to InvestingPro analysis, the stock is currently trading slightly below its Fair Value.
Alphabet stock traded higher in after-hours trading after the court ruling, which allows the company to continue paying for Search distribution while prohibiting exclusive contracts. The stock is trading near its 52-week high of $214.65, with InvestingPro data showing strong financial metrics and 14 additional key insights available to subscribers.
The decision represents a positive development for Apple and other distribution channels that previously had exclusive arrangements with Google’s search engine.
Under the court’s ruling, Google must share "some" search data with competitors, though BMO Capital notes this requirement is ambiguous and falls short of full-scale information sharing.
While BMO Capital views the announcement as a net positive for Alphabet, the firm reminds investors that a separate decision regarding ad-tech remedies is still pending.
In other recent news, Alphabet has been at the center of attention following several key developments. The company has seen a positive response from analysts after a ruling by Judge Mehta on the Google Search remedy case. Piper Sandler maintained its Overweight rating with a price target of $220, viewing the decision as favorable for Alphabet. Similarly, Rosenblatt raised its price target to $224, citing reduced near-term risks while acknowledging long-term challenges. Needham also increased its price target to $260, maintaining a Buy rating, following preliminary remedies in the DOJ case against Alphabet. These developments highlight the ongoing legal landscape Alphabet is navigating. Bernstein SocGen Group noted that the ruling did not impose severe measures like selling off Chrome or stopping distribution payments. Wolfe Research, although focused on broader market trends, emphasized the importance of AI spending, indirectly impacting companies like Alphabet. These recent updates reflect a complex but cautiously optimistic outlook from analysts regarding Alphabet’s legal and market positioning.
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