Perplexity bids $34.5 billion for Google Chrome as Cantor maintains neutral rating

Investing.com - Cantor Fitzgerald has maintained its Neutral rating and $201.00 price target on Alphabet (NASDAQ:GOOGL) stock amid reports of an unsolicited acquisition bid for its Chrome browser. According to InvestingPro data, Alphabet currently trades near its 52-week high of $207.05, with the stock receiving strong buy recommendations from analysts.

Press sources reported that AI search startup Perplexity has submitted a $34.5 billion offer to acquire the Chrome browser from Alphabet, according to Cantor Fitzgerald analyst commentary.

While Alphabet does not directly monetize Chrome, Cantor Fitzgerald estimates the browser’s value to the company is substantial, potentially generating $10-11 billion in EBIT as a standalone entity and warranting a valuation near $140 billion at 15 times price-to-earnings.

The research firm indicated that a Chrome divestiture could lead to "material value destruction" for Alphabet both financially and operationally.

The investment community continues to await Judge Mehta’s remedy ruling in the U.S. vs. Alphabet antitrust trial, with Cantor Fitzgerald noting that among remedies proposed by the Department of Justice, Chrome divestiture would likely be the most disruptive for Alphabet but also the least likely to be included in the final ruling.

In other recent news, Google has launched a new feature called Preferred Sources, allowing users to customize their news experience by selecting favorite sources within Top Stories. This feature is currently rolling out in the United States and India and will be available more broadly soon. Additionally, Google has partnered with NTT Data Group to develop AI agents for marketing and other business operations, utilizing Google’s generative AI technology. In the realm of education, Google is offering its advanced AI tools free to college students worldwide, starting with several countries, including the U.S. and Japan. This initiative provides students access to a variety of Google AI tools at no cost for a year. Meanwhile, Wells Fargo is expanding its partnership with Google Cloud to improve the deployment of AI agents, enhancing efficiency across various departments. On the financial front, BofA Securities has reiterated its Buy rating on Alphabet, despite potential Department of Justice remedy scenarios impacting the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.