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Denis Charlet / AFP via Getty Images
Multi-front legal battles should not shrink the growth of the Alphabet and
Facebook
in the next year, when the shares could rise two more digits from which they are currently trading, according to
Goldman Sachs.
Analyst Heath Terry gave both stocks a Buy rating late on Tuesday as he resumed corporate coverage. He set a price target for Google’s parent alphabet (ticker: GOOGL) at $ 2,250, which is 30% higher than its current price. Goldman has a price target of $ 330 on Facebook (FB), which is 22% above the current trading price.
Major technology companies have been market winners this year and have pushed the tech-heavy Nasdaq Composite 43% higher, almost three times as much as
S&P 500s
gain. Low interest rates and home-work and studying helped increase shares in technology companies, even though they face tight controls.
Google is fighting antitrust allegations from the Justice Department and a growing number of states, and Facebook is sparring with the Federal Trade Commission and 40 states over cartel cases.
The legal battles are part of a larger push back in Washington against big tech’s influence on everything from communications to American culture.
The alphabet rose 0.6% on Wednesday and rose 29% this year against a 14.7% increase in the S&P 500. Facebook rose 1.1% on Wednesday and rose 32% this year.
Goldman’s Terry resumes coverage of Alphabet and Facebook.
Write to Liz Moyer at [email protected]