Shares of tech company Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) experienced a slight dip in after-hours trading following reports from the Financial Times suggesting that Google is considering introducing a paywall for advanced search functionalities. Specifically, Google is considering offering new search features powered by generative artificial intelligence as part of its premium subscription services, which currently include access to its Gemini AI assistant in tools like Gmail and Google Docs. Still, its core search service will remain free for general users.
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This marks a pivotal moment for Google as it searches for the best way to integrate AI. The firm faces the challenge of adopting AI innovations without undermining its search business. The potential introduction of a subscription model for premium AI-powered search capabilities reflects Google’s ongoing efforts to balance innovation while keeping its core offerings competitive and profitable.
What Is the Fair Value of GOOGL Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 29 Buys, eight Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 48% rally in its share price over the past year, the average GOOGL price target of $165.28 per share implies 6.69% upside potential.
