Alphabet’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google has shut down 10 different companies’ apps, and there may be more in sight. But that didn’t sit well with investors, who sent the tech giant’s shares down fractionally in Friday afternoon’s trading.
Google shut down a wide range of apps, including the popular apps Naukri, a job search tool, and Bharat Matrimony, a “matrimony app.” That’s basically like a dating app, except it cuts right to the chase, actively pursues marriages, and offers some other services. The problem that prompted so many apps’ removal, however, is a whole different matter: disputes over fees.
Several Indian apps have protested Google’s fee practices, which Google notes are used to support and develop the overall app ecosystem. In fact, Google’s fee structure is now supported by the Supreme Court, who gave Google the green light to charge fees, or remove apps outright, in two separate decisions.
Trouble on the AI Front
While Google may find itself suffering within India, it’s got some issues in the broader market as well. In fact, reports suggest that Alphabet itself is in danger of losing ground with investors as it loses ground in artificial intelligence development. The recent troubles endured by Google’s AI image generator have left investors wondering if Alphabet can effectively take on its competitors in this market. Worse, there are a growing number of such competitors, making it possible that Alphabet might fall behind.
Is Alphabet Stock a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 29 Buys and eight Holds assigned in the past three months, as indicated by the graphic below. After a 50.11% rally in its share price over the past year, the average GOOGL price target of $164.59 per share implies 18.96% upside potential.
