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Investing.com - BofA Securities has reiterated its Buy rating and $240.00 price target on Apple (NASDAQ:AAPL) while addressing potential revenue risks from Google search payments. For a deeper analysis of Apple’s financial health and growth prospects, investors can access the comprehensive InvestingPro Research Report, which includes detailed valuation metrics and expert insights.
The investment firm estimates Apple could lose approximately half of the $20 billion+ annual payment it receives from Google if legal rulings prohibit Google from paying Apple for search-related arrangements.
BofA Securities believes such a ruling would likely apply only in the United States due to court jurisdiction limitations, allowing Apple to continue receiving payments for search traffic sent to Google from outside the U.S.
The firm calculates that a potential $10 billion+ loss would represent approximately 8% of Apple’s annual operating profit dollars.
These Google payments are currently accounted for as part of Apple’s Services revenue as Google Traffic Acquisition Costs (TAC) and have a high contribution to the bottom line as they function as royalty-type payments.
In other recent news, Alphabet (NASDAQ:GOOGL) Inc. reported impressive financial results for the second quarter of 2025, surpassing analyst expectations in both earnings per share (EPS) and revenue. The company’s EPS was reported at $2.31, exceeding the forecasted $2.17, while revenue reached $96.43 billion, beating projections by 2.68%. Meanwhile, Google has launched Deep Think for Gemini app Ultra subscribers, introducing advanced problem-solving capabilities that are faster for everyday use and reach Bronze-level performance on the 2025 International Mathematical Olympiad benchmark. Additionally, Google is rolling out new AI Mode features in Search to assist students, parents, and educators, with plans to expand support for additional file types and Google Drive integration.
In other developments, Avis Budget (NASDAQ:CAR) Group Inc. announced a strategic partnership with Waymo to launch a fully autonomous ride-hailing service in Dallas. Under this multi-year agreement, Avis will handle fleet operations, including infrastructure and maintenance, while Waymo will provide the ride-hailing service through its app. These recent developments highlight significant advancements and strategic partnerships in the technology and transportation sectors.
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