What's at Stake for Alphabet as DOJ Eyes Google's Chrome
Alphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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
-
Are You Putting Yourself Last? The Cost Could Be Your RetirementIf you're part of the sandwich generation, it's critical that you don't let the needs of your aging parents come at the expense of your future.
-
Time to Prepare for Disasters Like They Could Happen to YouYou can no longer have the mindset that "that won't happen here." Because it absolutely could. As we head into 2026, consider making a disaster plan.
-
How Women Will Lead a New Era in Charitable GivingWomen will soon be in charge of trillions in charitable capital, through divorce, inheritance and their own investments. Here's how to use your share for good.
-
Are You Putting Yourself Last? The Cost Could Be Your Retirement Security
If you're part of the sandwich generation, it's critical that you don't let the needs of your aging parents come at the expense of your future.
-
I'm an Insurance Pro: It's Time to Prepare for Natural Disasters Like They Could Happen to You
You can no longer have the mindset that "that won't happen here." Because it absolutely could. As we head into 2026, consider making a disaster plan.
-
The Future of Philanthropy Is Female: How Women Will Lead a New Era in Charitable Giving
Women will soon be in charge of trillions in charitable capital, through divorce, inheritance and their own investments. Here's how to use your share for good.
-
Cooler Inflation Supports a Relief Rally: Stock Market TodayInvestors, traders and speculators welcome much-better-than-hoped-for core CPI data on top of optimism-renewing AI earnings.
-
The November CPI Report Is Out. Here's What It Means for Rising PricesThe November CPI report came in lighter than expected, but the delayed data give an incomplete picture of inflation, say economists.
-
5 Smart Things to Do With Your Year-End Bonus, From a Financial ProfessionalAfter you indulge your urge to splurge on a treat, consider doing adult things with the extra cash, like paying down debt, but also setting up a "fun fund."
-
Are You a Gen X Investor? Here's How You Can Protect Your Portfolio From an AI BubbleAmid talk of an AI bubble, what's the best course of action for investors in their 50s and 60s, whose retirement savings are at risk from major market declines?
-
Hey, Retirees: Put Your Charitable Gifts in a Donor-Advised Fund (and Enjoy Your Tax Break)A donor-advised fund is a simple (really!), tax-smart strategy that lets you contribute a large, tax-deductible gift now and then distribute grants over time.
