Alphabet Stock Dips as Another Antitrust Trial Kicks Off
Alphabet shares fell 1.4% on Monday as a new antitrust trial began. The U.S. Department of Justice (DOJ) and eight states are accusing $Alphabet-C (GOOG.US)$ of monopolizing the digital ad market through acquisitions of ad tools, harming publishers and advertisers.
Key Issues:
- The trial focuses on Google Ad Manager and claims of monopolistic practices.
- The DOJ argues Google's ad business stifles competition, while Google contends breaking up its ad tech unit would slow innovation and hurt small businesses.
- Alphabet made $31.3 billion from display ads in 2023.
- The trial focuses on Google Ad Manager and claims of monopolistic practices.
- The DOJ argues Google's ad business stifles competition, while Google contends breaking up its ad tech unit would slow innovation and hurt small businesses.
- Alphabet made $31.3 billion from display ads in 2023.
Despite the legal risks, Wedbush Securities maintained an ‘Outperform’ rating on Alphabet with a $205 price target, noting that a full breakup is unlikely. While Google's stock has underperformed compared to broader indices this year, it's still up 7% in 2024.
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