Alphabet Inc. (GOOGL) has entered into a significant agreement with Samsung Electronics (SSNLF) to have its Google Gemini AI app pre-installed on Samsung devices. The arrangement involves substantial payments, which encompass both fixed monthly payments for each device and a share of advertising revenues generated through the application. This contract, according to reports, will extend for at least two years.
This deal comes in the wake of antitrust concerns, as a federal judge previously determined that Google's financial agreements with Samsung, where it paid to secure its position as the default search engine on Samsung gadgets, breached antitrust regulations. The court is currently deliberating on the appropriate remedies concerning these violations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Alphabet Inc (GOOG, Financial) is $205.71 with a high estimate of $234.00 and a low estimate of $173.00. The average target implies an upside of 37.27% from the current price of $149.86. More detailed estimate data can be found on the Alphabet Inc (GOOG) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Alphabet Inc's (GOOG, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Alphabet Inc (GOOG, Financial) in one year is $197.76, suggesting a upside of 31.96% from the current price of $149.86. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Alphabet Inc (GOOG) Summary page.
