Shares of Google's parent company Alphabet (GOOGL) are higher Tuesday. The upside comes even as reports swirl that antitrust officials at the Department of Justice (DOJ) have asked a federal judge to force Google to sell its Chrome web browser.
According to Bloomberg Law, which cites people familiar with the plans, top regulators at the DOJ have asked federal Judge Amit Mehta to force Alphabet's Google to sell Chrome, the world's most popular web browser, because it "represents a key access point through which many people use its search engine."
The request comes just three months after Judge Mehta ruled that Google illegally monopolized the search market.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The antitrust officials and states that have joined the case will also recommend that the judge impose data licensing requirements, Bloomberg added.
"If Mehta accepts the proposals, they have the potential to reshape the online search market and the burgeoning AI industry," Bloomberg said. "It marks the most aggressive effort to rein in a technology company since Washington unsuccessfully sought to break up Microsoft Corp. two decades ago."
Google, unsurprisingly, is not happy with the news. "The DOJ continues to push a radical agenda that goes far beyond the legal issues in this case," said Google VP of Regulatory Affairs Lee-Anne Mulholland in a statement, as reported by the BBC. "The government putting its thumb on the scale in these ways would harm consumers, developers and American technological leadership at precisely the moment it is most needed," she added.
In the near term, this will be unlikely to have any major impact on Alphabet. And it's unknown how the incoming Trump administration would handle such a move under new DOJ leadership.
Is Alphabet stock a buy, sell or hold?
Alphabet's had a strong year on the price charts, up 27% since the start of January to slightly outpace the S&P 500 Index. And Wall Street sees even more upside for the Magnificent 7 stock.
According to S&P Global Market Intelligence, the average analyst target price for GOOGL stock is $209.70, representing implied upside of nearly 20% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Argus Research is one of those with a Buy rating on the communication services stock, along with a $200 price target.
"We see Alphabet as one of the Tech industry's leaders, along with Meta Platforms (META), Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT)," wrote Argus Research analyst Joseph Bonner in an October 31 note. "These companies have come to dominate new developments in mobile, public cloud, and big data analytics, as well as emerging areas such as artificial intelligence, virtual/augmented reality, and even quantum computing."
Bonner admits that "Alphabet has often been criticized as a Johnny-one-note for its dependence on digital advertising," but "the rapid growth of Google Cloud has begun to diversify the company's revenue."
Related Content
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade TalksDespite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
How to Choose a Mortgage Lender in Five StepsNot all lenders are created equal — here’s how to compare offers, rates and terms with confidence.
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade Talks
Despite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
Why Smart Retirees Are Ditching Traditional Financial PlansFinancial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around YouWhile thinking about succession planning might feel like anticipating a landslide (here's to you, Fleetwood Mac), there are strategies you can implement to manage the uncertainty and the transition.
-
Stock Market Today: S&P 500, Nasdaq Near New HighsThe S&P 500 hasn't hit a new high since February. It's been since December for the Nasdaq.
-
The Bull Case for the Second Half of 2025This strategist sees a volatile market segueing to a strong close this year.
-
7 Essential Investing Rules We All Should KnowThe best time to start investing is right now. That's just one vital rule investors should be familiar with. Here are six more.
-
These Are the Key Tariff Issues to Watch in Coming MonthsWhile they're not dominating headlines right now, tariffs are not over. Some key dates are coming up fast that could upend markets all over again.
-
Technology Unleashes the Power of Year-Round Tax-Loss HarvestingTech advancements have made it possible to continuously monitor and rebalance portfolios, allowing for harvesting losses throughout the year rather than just once a year.
