Google ( GOOG ) parent Alphabet Inc ( GOOG ) is trading lower Monday amid reports of Microsoft Corp ( MSFT ) urging its employees in China to use Apple Inc ( AAPL ) iPhones for work, effectively banning Android devices. Google ( GOOG ) developed the Android operating system for use on touchscreen devices, including cell phones and tablets.

Previous reports highlighted Microsoft ( MSFT ) and Apple’s strong interest in their ambitions in China. In December, Microsoft ( MSFT ) President Brad Smith met with China’s Commerce Minister Wang Wentao to discuss artificial intelligence and trade relations between the U.S. and China.

Separate reports indicated Apple ( AAPL ) is in discussions with Chinese companies like Alibaba Group Holding Limited ( BABA ) to integrate AI functions into its devices sold in China.

BofA analyst Justin Post maintained a Buy rating on Alphabet with a price target of $200.

Post noted that Alphabet is well positioned long term with leading AI technology to apply to search, YouTube ( GOOG ), and Cloud businesses.

Statcounter June data indicates that Google’s global search market share increased 25bps month-over-month to 91.1%, while Bing’s share was up 2bps M/M to 3.7%.

In June, Google ( GOOG ) gained market share globally and in the U.S. (for the second consecutive month), which suggests that AI overviews could be aiding query growth, Post said. The analyst remained positive on growing Gemini integration across the Google ( GOOG ) ecosystem and thinks a broader rollout of AI overviews will likely help drive higher usage, while AI integration can increase monetization across Google ( GOOG ).

Moreover, focusing on expense management, he noted that Y/Y margin growth in 2024 will be a bright spot and a potential EPS upside driver.

As per the analyst, Alphabet should also benefit from increasing mobile usage, video usage, Google Play activity, and connected device activity (including autos).

Given technology leadership, high margins, and strong cash flow generation for buybacks, Alphabet should trade at a premium to a media peer group.

Post projected 2024 revenue and EPS of $292.04 billion and $7.80.

Price Action: GOOG shares traded lower by 0.17% at $191.62 at last check Monday. GOOGL is down 0.27% at $190.09.

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