Alphabet (GOOGL) Quantifying the Google Maps Opportunity - Piper Jaffray

Alphabet (NASDAQ: GOOGL) announced via its blog that it would begin offering new local ads across Google.com and Google Maps. Some investors have viewed Google Maps as a significant opportunity for the company since it is largely untapped real estate, however, Piper Jaffray analyst, Gene Munster believes the true value in Maps lies in the location data the company can use to relate store visits to core search advertising. While some limited new sponsored pins will begin showing on user searches in Maps, the analyst does not believe Google will aggressively change the ad experience on Maps and risk alienating users. As a result, the analyst believes the new ad units for Maps may directly add 1-2% to CY17 revenue, but aren't likely to cause a significant near-term change to the model and are not included in numbers.

No change to Overweight rating or price target of $911.

For an analyst ratings summary and ratings history on Google click here. For more ratings news on Google click here.

Shares of Google closed at $753.41 yesterday.

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