Multinational technology giant Google (NASDAQ:GOOGL) disclosed on Friday that it spent $26.3 billion to ensure its search engine was the default on mobile phones and web browsers in 2021.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The disclosure, made by senior vice president of Search Pragbakar Raghavan, adds to crucial developments in the ongoing Department of Justice antitrust lawsuit against the internet giant. Before Friday’s revelation, the company had objected to making the disclosure on grounds that it would harm its ability to negotiate future contracts.
However, Judge Amit Mehta–the judge overseeing the case– believed otherwise and decided that the numbers should be disclosed. It is unsure what implications the figures would have in strengthening or weakening the lawsuit against the company.
Indeed, the DoJ alleges that the deals made by Google with device makers and wireless carriers are illegal. They accuse the company of illegally maintaining its dominance through the deals and stifling competition.
Meanwhile, research company Bernstein estimated that Google’s Information Services Agreement with Apple (NASDAQ:AAPL) is valued between $18B and $20B annually and might account for 14% to 16% of Apple’s operational revenues. Apple executives have also testified in the ongoing case.
In the company’s defense, Raghavan stated that Google still faces competition from rivals for search relevance. The executive said competitors include Microsoft’s (NASDAQ:MSFT) Bing, Amazon (NASDAQ:AMZN), and TikTok.
Google shares declined marginally in Friday’s afternoon trading session.
What is the Future Price of GOOGL?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 21 Buys, five Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average GOOGL price target of $153.96 per share implies a 26.02% upside potential.
