Tech giant Google (NASDAQ:GOOG) (NASDAQ:GOOGL) has delayed the planned phaseout of third-party cookies on Chrome for the third time amid regulatory challenges. The search giant is scheduled to report its first-quarter results tomorrow.
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Google’s Multiple Concerns
Previously, Google planned the phaseout in the fourth quarter of this year. However, it is now pushing back this timeline to early next year. The delay comes as the company grapples with divergent feedback from regulators, developers, and the industry.
Advertisers rely on cookies for targeted advertisements and gauging the effectiveness of their ad campaigns. While the elimination of third-party cookies is expected to improve consumer privacy, concerns remain over what will take their place. The phaseout could fortify Google’s already dominant market position, owing to higher reliance on first-party data and Google’s ad platforms.
Google’s Alternative to Cookies
Last week, the Information Commissioner’s Office (ICO) in the U.K. noted that Google’s proposed alternative to cookies, the Privacy Sandbox, could prove to be insufficient in protecting consumers’ privacy. The ICO contended that the alternative has privacy gaps that could be exploited to enable user identification.
So far, Google has restricted cookies for 1% of Chrome users as a limited test. The company’s new 2025 timeline to phase out cookies remains contingent on approval from the ICO and the CMA (the U.K. Competition and Markets Authority).
Google’s Upcoming Q1
Meanwhile, Google is slated to report its first-quarter results tomorrow. Analysts expect the company to generate an EPS of $1.51 on $78.73 billion in revenue for the quarter. In the comparable year-ago period, Google’s EPS of $1.17 had fared better than consensus by $0.09.
Is GOOG a Buy, Sell, or a Hold?
Google’s share price has rallied by nearly 50% over the past year. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average GOOG price target of $168.64.
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