Needham raised the firm’s price target on Alphabet (GOOGL) to $260 from $220 and keeps a Buy rating on the shares. The “preliminary remedies” released by the District Court were far better for the company than the firm had expected, the analyst tells investors in a research note. Needham estimates that this decision will save Alphabet$5B-$10B per year in lower revenue share fees paid to Apple (AAPL) and other distributors, allow Apple to work with Gemini, Google’s LLM, and will lower the risk that structural remedies are applied in the next DOJ vs. Alphabet trial – the AdTech case, the firm estimates.
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