Wells says Google’s declining TAC ‘potential negative datapoint’ for Apple

Wells Fargo analyst Aaron Rakers notes that Google (GOOGL) reported total Traffic Acquisition Costs, or TAC, of $11.72B in Q1, which was down 2% year-over-year. While the firm is leaving its Services estimate for Apple (AAPL) unchanged ahead of the company’s upcoming fiscal Q2 report, it calls Google’s declining TAC "a potential negative datapoint." Wells has an Overweight rating and $185 price target on Apple shares.