‘Staggering’ Google Breakup Proposal From DOJ A ‘Kitchen Sink Moment’: Alphabet Analyst – Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

By Best Plumbers On Dec 31, 2024

On Wednesday, the Justice Department released its remedies aimed at reining in Google's search engine dominance. Alphabet, Inc GOOG GOOGL Google responded that the proposed remedies were “amazing.” Analysts also share their reactions.

BMO Capital Markets Analyst Brian Pitz reiterated its Outperform rating on Alphabet and left its price target at $217.
JPMorgan analyst Doug Grace maintained Alphabet's Overweight rating and increased its price target to $212.
Goldman Sachs analyst Eric Sheridan maintained a Buy rating and kept the price target at $210.

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Pitz described the DOJ's proposed comprehensive remedies as “a kitchen sink moment.” Pitz noted that the DOJ's proposed remedies go beyond Google's search distribution partnerships with Apple and Samsung and include the company's AI search-based investments.

Anmuth made similar comments about the “very comprehensive” remedies proposed by the DOJ. He said parts of the remedies were “more punitive than expected,” citing as examples those around limiting consumer choice and syndicating search data and ads.

The DOJ proposal likely represents the worst-case scenario for Google, Anmuth recalled. He expects Google's proposed final remedies to be much more modest.

“Ultimately, we expect the judge's final decision next summer to be more balanced… and likely to take greater account of the potential negative impact on users,” the JPMorgan analyst wrote.

Sheridan said the company has no opinion on a possible outcome of the case. However, he noted that leadership at the US Justice Department will change in January with the new Trump administration, adding an additional variable to the possible outcomes of the trial.

The analyst also pointed to the president-elect's recent comments Donald Trump expressed skepticism about a possible breakup of Google.

“If you do that, will you destroy the company? “What you can do without destroying it is make sure it’s fairer,” Trump said in October, according to Reuters.

Price action: According to Benzinga Pro, Alphabet shares were down 1.55% at $166.62 at the time of publication on Friday.

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Image: Simon from Pixabay

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