Bank of America raises Apple stock target to $260 after Google antitrust win

Bank of America has raised its Apple stock target to $260 from $250, following a favorable ruling in the Google antitrust case. The bank's research analyst Wamsi Mohani had previously predicted a cautious outlook for Apple's stock market performance, but the ruling has boosted the company's prospects. Apple's stock has gained 15% in the last month, and if it continues to rise, it will surpass its record-high of $260.10 per share from late 2024.

Apple's stock experienced a notable upswing following a U.S. District Court ruling in the Google antitrust case. The decision, which allows Google to maintain its revenue-sharing agreement with Apple, has significant financial and strategic implications for the tech giant. Apple's stock price traded 3.86% higher in the pre-market session, reflecting the positive impact of the ruling [1].

The core of this rally lies in the financial implications of the court's decision. Google's annual payment to Apple, estimated at $20 billion, is a substantial component of Apple's services revenue. This revenue stream has been a key driver of growth for Apple, and the court's decision ensures its continuation. The ruling also prohibits Google from entering into exclusive agreements, potentially fostering a more competitive environment in online search [1].

Analysts have weighed in on the implications of the court's ruling. Evercore ISI analyst Amit Daryanani characterized the decision as a “net positive” for Apple, highlighting that it allows Apple to maintain its substantial payments from Google and provides leverage in future search engine negotiations. Daryanani maintains an Outperform rating on Apple shares with a $250 price target [1].

Bank of America has raised its Apple stock target to $260 from $250, following the favorable ruling. The bank's research analyst Wamsi Mohani had previously predicted a cautious outlook for Apple's stock market performance, but the ruling has boosted the company's prospects. Apple's stock has gained 15% in the last month, and if it continues to rise, it will surpass its record-high of $260.10 per share from late 2024 [2].

The ruling's emphasis on non-exclusive agreements and data-sharing requirements could lead to new dynamics in the tech industry. For Apple, this could mean exploring alternative search partnerships or even developing its own search capabilities. The company's strong ecosystem and focus on privacy-centric AI development position it well to adapt to these changes [1].

Ultimately, the antitrust ruling has provided Apple with reinforced financial stability and strategic flexibility, alleviating concerns about potential disruptions to the Google search deal, and potentially helping to set the stage for deeper AI-related partnerships in the future.

References:
[1] https://www.asktraders.com/analysis/apples-stock-rallies-on-google-antitrust-news-but-why/
[2] https://finance.yahoo.com/news/why-apple-aapl-stock-trading-144540080.html