You’ve got to hand it to Alphabet (NASDAQ:GOOG); even when it loses nine figures in a court case, its share value can still tick up. Not much, granted, but any win is a win after Google’s Chromecast proved a magnet for lawsuits.
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In this case, Google lost $338.7 million after a federal jury found that Google did indeed violate patents held by Touchstream Technologies. The Touchstream patents were ultimately made part of Chromecast, specifically, the part that allows users to transfer videos from one screen to another. Touchscreen noted that it invented that technology back in 2010, and Google liked it enough to engage in a few meetings with Touchstream in December 2011. The meetings didn’t go anywhere, but somehow, Google introduced its Chromecast system in 2013. And this is just the beginning; Touchstream is targeting several other cable companies with similar suits.
Google, for its part, plans to appeal, noting that it has always developed its own technology, and that Touchstream’s patents are simply “invalid.” Meanwhile, Google is also rolling out new interfaces for Google Photos that will offer a slate of new features. The changes include the Memories tab, that comes with a whole new user interface. Users can also switch rapidly between Memories, Photos, and the Library mode.
Even after that kind of loss, analysts still look to Google as a rock among investments. Seven Buy ratings and two Holds make Alphabet stock a Strong Buy. Meanwhile, with an average price target of $131.33, Alphabet stock also offers investors 7.41% upside potential.
