In a research report released Friday, Baird analyst Colin Sebastian reiterated an Outperform rating on shares of Alphabet Inc (NASDAQ:GOOGL), with a $780 price target, following recent news that Facebook has started allowing Google to crawl and index its mobile app. Additionally, the search giant unveiled technology that lets users search inside and use mobile apps without downloading them, its latest effort to extend its search-and-advertising machine on smartphones.

Sebastian observed, “While the majority of Facebook’s content will remain private (i.e., logged-in user activity, private posts, etc.), we highlight the new ties between Facebook and Google as evidence of the ongoing relevance of Google Search even in a mobile- and app-oriented web. For Facebook, the partnership should increase traffic to Facebook’s public pages, while for Google, surfacing Facebook content makes search results more relevant for users.”

Furthermore, “Google announced that it will begin “streaming” select applications within mobile search results (for now on Android devices), essentially running the applications in the cloud and rendering them on mobile devices if clicked on in organic search. This provides app-only developers access to Google’s massive reach and reduces transactional friction in the app-install process, while also providing Google with insights to mobile behaviors previously inaccessible without deep-linking permission. We expect Google will ultimately monetize these “streaming” apps with a related ad format.”

Bottom line, “We highlight these announcements as examples of Google’s ongoing search innovation and opportunities in mobile.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Colin Sebastian has a total average return of 20.8% and a 75.4% success rate. Sebastian has a 20.8% average return when recommending GOOGL, and is ranked #17 out of 3857 analysts.

Out of the 48 analysts polled by TipRanks, 45 rate Alphabet stock a Buy, while 3 rate the stock a Hold. With a return potential of 4.5%, the stock’s consensus target price stands at $810.47.