Google's parent company Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) experienced a decline in its stock value during pre-market trading on Tuesday. As per Benzinga Pro, GOOGL shares fell by 1.02%, while GOOG shares decreased by 1.01%. This downturn follows reports that the U.S. Department of Justice is preparing to request a court order requiring Google to divest its Chrome browser.
What Happened: The DOJ's action stems from an August ruling that found Google guilty of illegally monopolizing the search market. Additionally, the department is expected to propose measures concerning Google's AI and Android operating system.
Google's Chrome browser, which commands approximately two-thirds of the global browser market, plays a vital role in controlling internet traffic and ad visibility, making it a significant revenue source for Google.
Google plans to appeal following a final ruling by U.S. District Judge Amit Mehta, expected by August 2025.
Why It Matters: As Alphabet approaches the Department of Justice's final proposed remedies on Nov. 20, the stakes are high. JPMorgan analyst Doug Anmuth anticipates potential headline risk but also sees this as an opportunity for clarity, paving the way for Google's response and future appeal strategies. Despite the looming legal challenges, Anmuth maintains an Overweight rating on GOOGL stock, with a price target of $212, 20% above current levels.
Meanwhile, Verily, Alphabet's life sciences subsidiary, is preparing to become a standalone entity by December. This separation from Google, including cutting ties with its cloud infrastructure and employee benefits, is seen as a crucial step towards Verily's goal of operating independently, though it will remain part of Alphabet.
- IBM, Disney And Other Large Advertisers Return To Elon Musk's X After A Year-Long Boycott: 'We Super Appreciate'
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Image via Unsplash
