Google parent company Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) on Monday. Microsoft (NASDAQ:MSFT) to its employees in China Apple (NASDAQ:AAPL) Use an iPhone for work, effectively banning Android devices Google developed the Android operating system for use on touchscreen devices like phones and tablets.
Previous reports have highlighted the strong interest of Microsoft and Apple in their China ambitions. In December, Microsoft’s president said Brad Smith Meeting with Chinese Minister of Commerce Wang Wen Tao to discuss artificial intelligence and the US-China trade relationship.
According to separate reports, Apple is in talks with the following Chinese companies: Alibaba Group Holding Limited (NYSE:BABA) plans to integrate AI capabilities into devices it sells in China.
Bank of America Analyst Justin Post maintained a buy recommendation on Alphabet shares with a $200 price target.
Post noted that Alphabet is well positioned for the long term with cutting-edge AI technology that can be applied to its search, YouTube and cloud businesses.
According to June data from Statcounter, Google’s global search market share increased 25 bps month-on-month to 91.1%, while Bing’s share increased 2 bps month-on-month to 3.7%.
Post said Google’s market share gains globally and in the U.S. in June (for the second month in a row) suggest that AI Overview may be driving query growth. Analysts remain positive on the expansion of Gemini integration across the Google ecosystem and believe a broader rollout of AI Overview is likely to lead to increased usage, while AI integration could drive profitability across Google.
Additionally, he noted that a focus on cost management would be a positive sign, with year-over-year margin growth in 2024 likely to help boost EPS.
According to analysts, Alphabet should also benefit from increased mobile usage, video usage, Google Play activity and connected device activity (including automobiles).
Given Alphabet’s technology leadership, strong profit margins, and strong cash flow generation for share repurchases, it should trade at a premium to its media peer group.
Post forecast 2024 revenue and EPS of $292.04 billion and $7.80, respectively.
Price Trends: GOOG shares were trading at $191.62, down 0.17%, as of last check on Monday, while GOOGL was trading at $190.09, down 0.27%.
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