Google parent Alphabet (GOOGL) is pleading with the Donald Trump Government to reconsider a decision of breaking up the company, which was passed by the Biden Administration. According to reports, Google’s executives met with Trump’s officials last week, urging them to reverse the course, citing national security concerns and probable harm to the American economy.
The parent company of the web browser Google Search is facing two massive antitrust cases brought by the Justice Department (DOJ), one related to its illegal dominance in the Search market and the other targeting its monopoly in the online Ad tech market. The DOJ is studying the proposal of breaking up Google by selling its Chrome Browser. Additionally, Google is required to stop paying third party sellers such as Apple (AAPL) for making Google Search their default search engine.
Is Google Scared of Losing its Search Dominance?
It is likely that Google is scared of losing its large share of the online Search market. Google earns a majority of its revenues from its Google Search business backed by growing advertising revenues. Selling the Chrome Browser will impact Google where it hurts the most.
Google lost the landmark antitrust case over its search dominance last august, which was the first leg of the trial. The second leg is where the Judge will give remedial measures to end Google’s alleged search monopoly. The antitrust trial for the same is set for April and both the DOJ and Google are expected to file their final proposals on the case by this Friday. Alphabet is hoping that the Trump administration could be more lenient towards its request than the Biden administration. The final ruling on the case is scheduled for August.
Is Google a Good Buy Right Now?
Wall Street remains divided on Alphabet’s stock trajectory currently. On TipRanks, GOOGL stock has a Moderate Buy consensus rating based on 26 Buys and 11 Hold ratings. Also, the average Alphabet Class A price target of $215.56 implies 26.2% upside potential from current levels. In the past year, GOOGL stock has gained 29.3%.
