Google, under Alphabet Inc. (GOOG, Financial), is set to invest approximately $2.4 billion to license technology from Windsurf, a startup specializing in artificial intelligence coding. In addition to this, the tech giant will bring on board Windsurf's CEO and select members of its team. This development follows previously stalled acquisition discussions between Windsurf and OpenAI.
Google's strategic move involves integrating a few key employees from Windsurf into its DeepMind division, where they will work on agentic coding projects. Notably, Google has opted not to take an equity stake in Windsurf, focusing instead on leveraging the expertise and technological innovations of the startup to enhance its own AI capabilities.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Alphabet Inc (GOOG, Financial) is $202.67 with a high estimate of $225.00 and a low estimate of $185.00. The average target implies an upside of 11.78% from the current price of $181.31. More detailed estimate data can be found on the Alphabet Inc (GOOG) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Alphabet Inc's (GOOG, Financial) average brokerage recommendation is currently 1.6, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Alphabet Inc (GOOG, Financial) in one year is $201.53, suggesting a upside of 11.15% from the current price of $181.31. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Alphabet Inc (GOOG) Summary page.
