Alphabet: Wedbush unaffected by court ruling
(CercleFinance.com) - Wedbush confirms its 'outperform' rating on Alphabet (Google) shares, with an unchanged 12-month target price of $205 .
The analyst says that yesterday, the US District Court ruled in favor of the DOJ (Department of Justice) in the case of United States vs. Google, concluding that Google was a monopoly and had acted to maintain that position.
The Court's decision mainly denounced the distribution agreements that enabled Google to place its search engine by default with major browser developers (e.g. Firefox), mobile device manufacturers (e.g. Apple, Android) and telecom operators (e.g. Verizon).
These agreements cost Google around $26bn in 2021, of which around $20bn went to Apple.
Google has announced that it intends to appeal this decision.
Nevertheless, Wedbush believes that it could be several quarters, or even years, before a final decision is reached. We do not expect any disruption to Google's near-term operations as a result of this decision, the analyst concludes.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
The analyst says that yesterday, the US District Court ruled in favor of the DOJ (Department of Justice) in the case of United States vs. Google, concluding that Google was a monopoly and had acted to maintain that position.
The Court's decision mainly denounced the distribution agreements that enabled Google to place its search engine by default with major browser developers (e.g. Firefox), mobile device manufacturers (e.g. Apple, Android) and telecom operators (e.g. Verizon).
These agreements cost Google around $26bn in 2021, of which around $20bn went to Apple.
Google has announced that it intends to appeal this decision.
Nevertheless, Wedbush believes that it could be several quarters, or even years, before a final decision is reached. We do not expect any disruption to Google's near-term operations as a result of this decision, the analyst concludes.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.