Samsung represents around $20B of Google’s revenue, says Barclays

If the New York Times report proves accurate and Samsung is considering replacing Google (GOOG;GOOGL) with Microsoft’s (MSFT) Bing, it would be potentially disruptive to Google’s search revenue and operating profit, Barclays analyst Ross Sandler the analyst tells investors in a research note. The firm estimates Samsung represents around $20B of Google’s gross revenue and $7.3B of operating income. The TAC rate is lower on Android than Apple’s (AAPL) iOS, hence Google would need to recapture 70% of lost queries to recoup the lost operating income if Samsung were to switch to Bing. says Barclays. It remains "in the bull camp" on Google, however, noting that the New York Times article also mentioned a plethora of possible new artificial intelligence products coming from Google which "should help steer the narrative back a bit." In addition, the advertising market is slated to recover in the second half of 2023, at which point Alphabet shares are likely to re-rate on its year-of-efficiency, the firm writes. It has an Overweight rating on the shares with a $160 price target.