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Denis Charlet / AFP through Getty Images
Legal battles on several fronts should not hinder growth for the Alphabet and
Facebook
next year, as shares could rise another two-point from where they are currently trading,
Goldman Sachs.
Analyst Heath Terry gave both shares a Buy rating late Tuesday, while resuming hedging companies. He set a target price for Google’s parent Alphabet (ticker: GOOGL) at $ 2,250, which is 30% higher than the current price. Goldman has a target price of $ 330 on Facebook (FB), which is 22% above its current trading price.
Large technology companies have won the market this year, pushing Nasdaq Composite up 43% more, almost three times more than
S&P 500
I earn. Low interest rates and work and study at home have helped increase the shares of technology companies, even if they face tough control.
Google is fighting antitrust allegations from the Justice Department and a growing number of states, and Facebook is fighting the Federal Trade Commission and 40 states over antitrust issues.
The legal struggles are part of a bigger push in Washington against the influence of big technology in everything from communications to American culture.
Alphabet rose 0.6% on Wednesday and up 29% this year from 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]