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Thursday, September 28, 2023

Google, Others Seek to Meet Malaysian PM to Discuss Cabotage Policy

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Alphabet’s (GOOGL) Google is part of a consortium that is pushing to meet the new Malaysian Prime Minister, Ismail Sabri Yaakob. Reuters reported that the search giant, along with Microsoft (MSFT), Amazon (AMZN) and Facebook (FB), is seeking that foreign vessels be allowed to repair undersea cables within the country’s waters.

Google is a multinational tech giant that specializes in internet-related products and services. Its core business revolves around search online advertising and cloud computing.

The companies have already sent a letter to the prime minister to discuss the cabotage policy, which prohibits the use of foreign vessels to repair submarine cables within Malaysian waters. The previous government had revoked an exemption that allowed the likes of Google to deploy foreign vessels to repair the cables in case they were damaged.

Spearheading talks between the government and the U.S. tech giants is the country’s internet exchange body, Malaysia Internet Exchange (MyIX). The agency is pushing for the exemption that will allow the use of foreign vessels, given that the domestic industry cannot carry out such repair works.

The exemption, which the previous government revoked, meant for any repair works in the sea could be carried out more efficiently and rapidly, thus averting the economic impact of cable disruptions. (See Google stock charts on TipRanks)

In July, Argus Research analyst Joseph Bonner reiterated a Buy rating on Google and raised the price target to $3,100 from $2,800, implying 7.83% upside potential to current levels.

According to the analyst, the company’s advertising revenue continues to show strong momentum.

While the ongoing antitrust cases against the company are serious, the analyst expects them to take time before playing out.

Consensus among analysts is a Strong Buy based on 30 Buys. The average Alphabet price target of $3,173.55 implies 10.39% upside potential.

GOOGL scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

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The post Google, Others Seek to Meet Malaysian PM to Discuss Cabotage Policy appeared first on TipRanks Financial Blog.

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