Alphabet

Alphabet’s latest results give analysts at Wedbush confidence that the parent company of Google is set to manage a period of transition. Alphabet’s 3Q results were powered by strong performance in its cloud-computing division, while Google’s search engine and YouTube video platform both reported slowing revenue growth for a second straight quarter. The analysts note Google’s integration of Gemini into its core services is starting to result in tangible results across consumer and enterprise products. “We continue to believe the structural risks to Google’s search dominance are overblown, and we are optimistic on the longer-term prospects of the search business as Google manages through this period of transition,” say the analysts, who raise their price target to $210 from $205. Shares rise 6.6% to $180.92 in early trading.

The Justice Department has suggested a breakup of Alphabet’s Google as a potential way to address its de facto search monopoly. The company is fighting back against the prospect. If it happens, however, investors might not be all that upset. “The government seems to be pursuing a sweeping agenda that will impact numerous industries and products, with significant unintended consequences for consumers, businesses, and American competitiveness,” wrote Lee-Anne Mulholland, Alphabet’s vice president of regulatory affairs in a Tuesday blog post. To call it a big deal would be an understatement. A breakup of a monopoly hasn’t happened since AT&T was split into pieces in the 1980s. The Justice Department has until Nov. 20 to decide on what specific remedy it is seeking. U.S. District Judge Amit Mehta, who ruled in August that Google has a monopoly in search, is expected to rule next year on what action should be taken.

JP Morgan analyst Doug Anmuth expects negative headlines for Google’s parent-company Alphabet, Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) when the Department of Justice (DOJ) proposes a broad and punitive set of potential remedies against the company this week. The DOJ is expected to file a high-level framework for potential remedies on Tuesday in its search distribution trial against Google. Anmuth said he expects the DOJ to file a “wide-ranging and far-reaching set of potential remedies, most likely more than the DOJ thinks it could ultimately win.” The JP Morgan analyst sees five potential remedies which could include: No exclusive default search agreements for Google across all browsers, OEMs and carriers The separation of Android & Chrome from Google The separation of Google Search ads from Google Limitations on how Google can implement AI in search Data sharing, including providing API or patent access to search competitors Anmuth predicted Google could see up to a 10% hit on

By Emily Bary A Bernstein analyst says it’s still ‘difficult to defend’ pitching Alphabet shares with conviction given various regulatory and competitive risks Are Alphabet Inc. shares a bargain – or justifiably cheap? That’s a question Bernstein analyst Mark Shmulik recently explored, as he noted some striking data points. For one, Alphabet shares (GOOG) (GOOGL) are trading at nearly their largest-ever discount to the S&P 500 SPX when looking at forward price-to-earnings multiples, and the actual record discount was set just a few weeks ago. The stock is also trading at its largest discount to Meta Platforms Inc. shares (META) on record. If you looked at the Google parent company’s forecasts without knowing the company behind them, you would likely be tempted to buy, Shmulik said. Shares are trading at 19 times forward earnings estimates but the company is projected to grow revenue at a 11% annual clip through 2027.

Alphabet’s (GOOG) Google faces uncertainty around its search business, with investors now factoring in a possible loss of exclusivity with Apple (AAPL), Oppenheimer said in a note emailed Wednesday. “Google generates 31% of gross search revenue ($61B) via Apple devices and pays 36% to Apple for exclusivity, resulting in 19% of net ad exposure,” Oppenheimer said. However, Google would need to retain only 65% of Apple search activity if there were no traffic acquisition cost payment, or 75% if the TAC decreases to 15%, it added. This could cap price-to-equity ration at 20, the brokerage said in the note. However, a survey showed that 75% users would go for Google if they had to pick a default search, and if Apple removed Google from default search, 78% would download Chrome, Oppenheimer said. The US Department of Justice’s case against Google’s Adtech unit is also a headwind which could translate to

What would Alphabet be worth if it were broken up into parts? According to TD Cowen, significantly more money than it is worth now. On Monday, analyst John Blackledge valued each of Alphabet’s businesses as if they were separated from the company. “Ongoing legal action opens up Alphabet to a wide range of potential longer-term remedies, including separation of one or more of its businesses,” he wrote. “As a result, we expect investors to increasingly focus on biz segment valuations.” Early in August, Alphabet lost its antitrust case against the U.S. government. Judge Amit P. Mehta of the U.S. District Court for the District of Columbia ruled that Google’s search engine is a monopoly and engaged in anticompetitive behaviors to “maintain its monopoly.” Bloomberg and the New York Times also reported later that the Justice Department is considering asking the judge to break up Google. In total, the aggregate value

Alphabet’s (GOOG, GOOGL) Google near-term operations are not expected to be disrupted by a recent court ruling that concluded that Google is a monopolist, Wedbush Securities analysts said in a note Wednesday. “The [US Department of Justice] has not formally communicated what possible remedies it may pursue, and proceedings will likely be held in the coming months to determine potential remedies,” the analysts, including Daniel Ives, said in the note. The analysts also took note of a Bloomberg report that the DOJ is considering a bid to break up Google. “We believe this would be a stretch and also Google will clearly appeal these rulings which will be in the court system for years possibly,” the analysts said. They said they continue to see a breakup of the Big Tech business models as “highly unlikely down the road.”

The US Department of Justice is considering options such as a bid to break up Alphabet (GOOG, GOOGL) unit Google after a recent court ruling found that the technology giant monopolized the online search market, Bloomberg News reported Tuesday, citing people with knowledge of the deliberations. The company could be forced to share more data with competitors, with other possible options including steps to prevent it from gaining an unfair advantage in artificial intelligence products, the unnamed sources told the news outlet. If the DOJ proceeds with a breakup plan, the Android operating system and Google’s Chrome web browser could be the most likely units for divestment, the people reportedly said. Government officials are also considering forcing a sale of AdWords, one of the sources told Bloomberg. Earlier this month, a federal judge ruled that Alphabet operated an illegal monopoly and violated US antitrust laws by spending tens of billions

Alphabet’s (GOOG, GOOGL) Google is purchasing a minority stake worth $350 million in Indian e-commerce company Flipkart, valuing the firm at $37 billion, Reuters reported Friday, citing a source with direct knowledge of the matter. Flipkart announced Friday, as part of its latest funding round led by Walmart (WMT), that Google will become a minority investor pending regulatory and customary approvals from both parties. “Google’s proposed investment and its Cloud collaboration will help Flipkart expand its business and advance the modernization of its digital infrastructure to serve customers across the country,” Flipkart added. “As a people-led, tech-powered omnichannel retailer helping people save money to live better, Walmart and Flipkart look forward to welcoming Google as a minority investor,” Walmart told MT Newswires.

Alphabet’s (GOOG, GOOGL) Google is purchasing a minority stake worth $350 million in Indian e-commerce company Flipkart, valuing the firm at $37 billion, Reuters reported Friday, citing a source with direct knowledge of the matter. Flipkart announced Friday, as part of its latest funding round led by Walmart (WMT), that Google will become a minority investor pending regulatory and customary approvals from both parties. “Google’s proposed investment and its Cloud collaboration will help Flipkart expand its business and advance the modernization of its digital infrastructure to serve customers across the country,” Flipkart added.

Alphabet-owned (GOOGL, GOOG) Google’s potential deal to license its Gemini generative artificial intelligence for iPhones may be featured at Apple’s (AAPL) Worldwide Developers Conference in June, UBS Securities said Thursday in a report. “We now look to WWDC24 as the next potential catalyst venue” for the deal after the Google I/O annual developer conference concluded with no announcement, UBS said. As expected, UBS said I/O 2024 highlighted Gemini’s capabilities. “It seemed to us that Google was more keen this year to thematically and explicitly draw the link between Gemini and practical contextual utility across many of its apps,” the report said. “That Google is incorporating Gemini not just within its apps but also within the Android OS in our view underscores the reason why all hardware manufacturers should be weighing working with the company to drive innovation,” UBS said. UBS also said a broader rollout for Google’s AI Overviews is

Alphabet (GOOG, GOOGL) is in advanced discussions to acquire HubSpot (HUBS), negotiating terms of a potential deal, Bloomberg reported Thursday, citing people familiar with the matter. The companies are still in talks, with no final agreement reached yet, and there’s no assurance that a deal will materialize, sources told Bloomberg, adding that another potential buyer could also emerge. HubSpot, specializing in customer relationship management for smaller businesses, currently has a market value of $30 billion, the report said. Last month, Reuters reported that Google parent Alphabet had engaged in discussions with bankers regarding a potential offer for HubSpot.