Raymond James initiates QXO stock with Outperform rating on acquisition strategy
Investing.com - Truist Securities has reiterated its Buy rating and $225.00 price target on Alphabet (NASDAQ:GOOGL) stock following what the firm called a "major win" in the company’s antitrust case. The tech giant, with its impressive $2.56 trillion market cap and robust 13% revenue growth, continues to dominate the Interactive Media & Services industry. According to InvestingPro data, 30 analysts have recently revised their earnings estimates upward for the upcoming period.
Federal Judge Amit Mehta rejected the Department of Justice’s proposal that Google divest Chrome, its web browser that serves as the main distribution platform for Google’s search engine and other services. The judge also ruled that Google would not have to sell its Android operating system.
While the judge removed the exclusivity aspect of deals with mobile device makers, he maintained that Google is allowed to continue offering payments to these partners for distribution of services such as Search and AI products. Judge Mehta noted that cutting off payment from Google would impose harm to distribution partners, related markets, and consumers.
Google had previously vowed to appeal Mehta’s original ruling that deemed the tech giant a monopolist. The company is reportedly pushing for a stay of the judge’s ruling while it appeals to the U.S. Court of Appeals for the District of Columbia Circuit.
Alphabet stock rose approximately 7% in after-hours trading following the news, which Truist Securities characterized as favorable for Google and for emerging AI platforms including OpenAI and Perplexity, but less favorable for the government. The stock, currently trading near its 52-week high with a P/E ratio of 22, has shown strong momentum with a 27% gain over the past six months. InvestingPro analysis indicates the stock is currently fairly valued, with additional insights available in the comprehensive Pro Research Report, one of 1,400+ detailed company analyses available to subscribers.
In other recent news, Alphabet has been in the spotlight due to a series of significant developments. The company received favorable outcomes from a U.S. District Court ruling in the Search antitrust trial, allowing it to continue paying for Search distribution while prohibiting exclusive contracts. This decision prompted BMO Capital to maintain its Outperform rating and a $225 price target on Alphabet. Similarly, Piper Sandler reiterated its Overweight rating with a $220 price target, viewing the court’s decision as beneficial for Alphabet. Rosenblatt also adjusted its outlook, raising Alphabet’s price target to $224 from $211, citing reduced near-term risks despite maintaining a Neutral rating. These analyst actions reflect a positive sentiment following the court ruling. Meanwhile, Wolfe Research suggests that stocks, including Alphabet, may continue to see growth as long as artificial intelligence spending expectations remain strong.
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