A steady barrage of legal troubles shouldn’t hinder growth for Alphabet and Facebook in 2021, as the shares could both double from their current prices. Goldman Sachs Analyst Heath Terry slapped both stocks with a Buy rating late Tuesday as he resumed coverage of the companies. He pinned a price target for Google parent Alphabet [$GOOGL] at $2,250, which is 30% higher than its current price. Goldman has a $330 price target on Facebook [$FB], which is 22% above its current trading price.
Silicon Valley tech giants have been market winners for 2020, launching the Nasdaq 43% higher, nearly three times as much as the S&P 500’s gain. Rock bottom interest rates and stay-at-home working and studying sparked shares of tech companies, even though they face litigation.
Google is fighting antitrust charges by the Justice Department and a growing number of states, and Facebook is sparring with the FTC and 40 states on antitrust matters. The legal tussles are part of a bigger push back in Washington against big tech’s influence in everything from communications to American culture. The FTC Wants Zuck to Get Rid of IG & WhatsApp