Even after facing issues with the launch of Google News Showcase in the U.S., interactive media giant Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) is positive about the prospects of its platform in the U.S.
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Google News Showcase, which is yet to be launched in the U.S., is already popular in many countries. Earlier, the $1.4-trilion company had planned to launch Google News Showcase in the United States in 2021.
What Is Google News Showcase?
Google News Showcase gives its readers an enhanced news experience by offering them access to content from various news publishers. Meanwhile, publishers get remunerated by Alphabet for publishing their content on the platform. The platform is already available in Germany, New Zealand, Brazil, and Australia.
In the United States, Alphabet is in a fix as news publishers are probably dissatisfied with the payment terms of the deal offered by the search engine giant, according to a Wall Street Journal report. Also, some publishers are believed to be waiting for the Journalism Competition and Preservation Act. This U.S. legislation is due for a committee vote in September 2022.
Despite these hiccups, Alphabet anticipates generating millions of dollars of revenue from its Google News Showcase business in the United States. The WSJ report communicates that many publishers, including Bloomberg Media, Reuters, and The Texas Tribune, have entered a multi-year deal with Alphabet related to this platform.
More Product Launches In the Cards
Meanwhile, Alphabet is all set to unveil other products at its Made by Google event on October 6. Alphabet is expected to launch its Pixel 7 and Pixel 7 Pro smartphones and the Pixel Watch at the event. In addition, the company plans to make a few additions to its smart home portfolio, Nest.
Is Alphabet Stock a Good Buy Now?
Alphabet’s prospects seem to be bright, especially considering the popularity of its existing products and services, and its efforts to enhance user experience through product innovations. These tailwinds and analysts’ unanimously optimistic view of the company could interest prospective investors.
A pictorial representation of GOOGL and GOOG stocks is provided below.
The Strong Buy consensus rating of GOOG is based on 11 unanimous Buys. GOOG’s average price target is $144.64, representing 30.92% upside potential from the current level.
Meanwhile, analysts have assigned 30 Buy recommendations to GOOGL stock versus two Hold ratings. GOOGL’s average price forecast is $142.91, mirroring upside potential of 30.57% from the current level. A price performance chart of the two stocks is given below.
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