Alphabet Stock (GOOGL) Gets Buy Reaffirmation as DoJ Case Looms

Alphabet Inc. (NASDAQ:GOOGL) is one of the Trending AI Stocks on Wall Street. On August 11, BofA Securities analyst Justin Post reiterated a Buy rating on the stock with a $217.00 price target.

According to the investment bank, chrome divestiture, Google’s traffic acquisition cost (TAC) payments for default placement, and search data sharing requirements are three key aspects of the DoJ’s remedy requests that could impact Google.

“We highlight potential remedies scenarios around three key aspects of the DoJ’s remedy requests: 1) Chrome divestiture, 2) Google’s payments of TAC for default placement, and 3) Search data sharing requirements. Structural remedies, including Chrome divestiture would be more disruptive to Alphabet; though rare in US precedent, such a move would reduce synergies and scale advantages across Google’s ecosystem. For behavioral remedies, based on our client conversations we think the Street expects elimination of exclusive search deals and required implementation of some choice screens. "

"The biggest concern for Google is potentially mandated changes in the US TAC agreements (we estimate $17.5bn to Apple in US in 2026), which could reduce Google’s search query share and incentivize mobile OEMs to pursue partnerships with AI competitors. Finally, new data sharing requirements could dilute Google’s data advantage, undermining the company’s differentiated ad stack and intensifying search competition.”

Alphabet Inc. (NASDAQ:GOOGL) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses.

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Disclosure: None.