- Nomura Instinet initiates coverage on Alphabet (GOOG, GOOGL) with a Buy rating and $1,400 price target, a 20% upside to yesterday’s close.
- The firm also initiates Facebook (NASDAQ:FB) at Buy with a $228 target, a 12% upside.
- Analyst Mark Kelley says increased regulatory scrutiny could favor tech giants at the expense of smaller companies that are less capable of meeting high regulatory requirements.
- Facebook faced increased scrutiny after the Cambridge Analytica data scandal. Both Facebook and Google had to deal with the May 25 launch of the EU’s General Data Protection Regulation. California followed up with its own data crackdown.
- Alphabet shares are down 0.7% premarket to $1,158.84.
- Facebook shares are down 0.7% to $202.10.
- Previously: California set to vote on sweeping online privacy law (June 28)
- Previously: Reuters: Google's GDPR delay raises risks for ad tech firms (July 3)
- Previously: First fine levied on Facebook over Cambridge Analytica (July 11)
- Now read: What Facebook's Show With Cristiano Ronaldo Might Tell Us About The Future
Original article