Goldman sees double-digit gains for alphabet, Facebook stock

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Legal battles on multiple fronts shouldn’t hinder Alphabet’s growth

Facebook

next year, as stocks could rise further by double digits from their current position, according to

Goldman Sachs.

Analyst Heath Terry gave both stocks a buy rating on Tuesday night as he resumed coverage of the companies. He set a price target for Google Parent Alphabet (ticker: GOOGL) at $ 2,250, which is 30% higher than its current price. Goldman has a price target of $ 330 on Facebook (FB), which is 22% above its current price.

Big tech companies have been the market winners this year, pushing the tech-heavy Nasdaq Composite 43% higher, nearly three times higher than the

S&P 500

Gain. Low interest rates and working and studying from home have helped boost stocks of tech companies, even though they come under scrutiny.

Google is fighting antitrust charges against the Department of Justice and a growing number of states, and Facebook is battling with the Federal Trade Commission and 40 states over antitrust matters.

The legal battles are part of a larger push in Washington against the influence of big tech in everything from communications to American culture.

Alphabet rose 0.6% Wednesday and 29% this year, compared to 14.7% in the S&P 500. Facebook was up 1.1% Wednesday and 32% this year.

Terry from Goldman takes over the cover of Alphabet and Facebook.

Write to Liz Moyer at [email protected]