Alphabet Stock Dips in Premarket Amid Antitrust Breakup Threat

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Alphabet Stock Dips in Premarket Amid Antitrust Breakup Threat

The U.S. Justice Department is considering recommending that

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-owner Alphabet (NASDAQ:) be forced to sell off parts of its operations in what has been called a “landmark antitrust case.”

This move is a potential remedy to address the tech giant’s alleged monopolization of the online search market. The case, currently in its remedy phase, follows a ruling that

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(NASDAQ:) violated antitrust laws in both online search and search text ads markets.

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and DoJ’s Antitrust Strategy

The Justice Department filed a court document on Tuesday, October 8, 2024, outlining potential remedies against

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. Judge Amit Mehta, who is overseeing the case, is expected to hold a trial on proposed remedies in spring 2025, with a final decision anticipated by August 2025.

The DoJ is weighing both behavioral and structural remedies, including forcing

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to provide access to underlying data used for search results and AI products.

At the heart of DoJ’s case is the belief that

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gained unfair advantages through ******** distribution agreements with other tech companies, making its search engine the default option on smartphones and web browsers.

The department aims to prevent

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from leveraging products like Chrome, Play, and Android to advantage its search and search-related products over competitors.

A

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Breakup Will Be a Historical Event for Antitrust Enforcement

If successful, this would mark the first company breakup for ******** monopolization since the unsuccessful attempt to dismantle

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(NASDAQ:) two decades ago. The case represents a significant shift in antitrust enforcement against big tech companies and could set a precedent for future actions in the industry.

As news of the potential breakup spread,

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’s stock (GOOG) showed signs of volatility. In pre-market trading as of 5:33 AM EDT, GOOG was down 1.25% to $163.63, following a previous close of $165.70 at the time of writing.

Despite the current dip, the stock has shown strong performance over the past year, with a 19.73% return, though still underperforming the S&P 500’s 33.48% gain.

Alphabet Inc.,

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’s parent company, maintains a substantial market capitalization of $2.031 trillion, with a P/E ratio of 23.77 and earnings per share of $6.98.

Analyst recommendations remain mixed, with some rating it as “Outperform” or “Strong Buy,” and an average price target of $198.85, suggesting potential upside despite the ongoing antitrust concerns.

***

Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

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#Alphabet #Stock #Dips #Premarket #Antitrust #Breakup #Threat

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