What's Going On With Google Parent Alphabet's Stock Tuesday?
Portfolio Pulse from Anusuya Lahiri
Alphabet Inc's stock (GOOG, GOOGL) is trading lower after a federal jury ruled against its Android app store for antitrust violations. Epic Games filed the lawsuit in 2020, accusing Google of maintaining a monopoly. Similar to Apple (AAPL), Google charges a commission on in-app transactions. Epic Games previously lost a case against Apple. Google reportedly paid Microsoft (MSFT) and Tencent Holdings (TCEHY) to avoid competition with the Play Store. Google's CEO Sundar Pichai denied the allegations but admitted to inadvertently erasing internal discussions. Spotify (SPOT) has a deal with Google to avoid most commission fees. GOOG shares dropped 1.05% in premarket trading.
December 12, 2023 | 1:56 pm
News sentiment analysis
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NEGATIVE IMPACT
Apple Inc may face increased scrutiny as the antitrust ruling against Google's Play Store could draw parallels to Apple's own app store practices.
Although not directly implicated, the antitrust ruling against Google may increase regulatory attention on Apple's app store practices, potentially affecting its stock price.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Alphabet Inc's stock is trading lower due to a federal jury ruling against its Play Store for antitrust violations, which could lead to legal repercussions and affect its revenue from app commissions.
The negative ruling against Alphabet's Play Store is a significant legal setback that could lead to further regulatory scrutiny and potential fines, impacting investor sentiment and the company's revenue from the app store.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Alphabet Inc's Class A shares are expected to mirror the performance of its Class C shares (GOOG) and trade lower due to the antitrust ruling against its Play Store.
As GOOGL shares represent the same company as GOOG, they are expected to be similarly affected by the antitrust ruling, leading to a potential decrease in stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Microsoft Corp's past agreement with Google to not launch competing app stores may come under regulatory scrutiny following the antitrust ruling against Google.
Microsoft's previous agreement with Google may be revisited by regulators, but the direct impact on Microsoft's stock is uncertain as the focus is on Google's practices.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 40
NEUTRAL IMPACT
Spotify Technology's special deal with Google to avoid commission fees may attract attention, but it's unclear how this will affect SPOT's stock in the short term.
Spotify's arrangement with Google may be scrutinized in light of the antitrust ruling, but the direct impact on Spotify's stock is not immediately clear.
CONFIDENCE 65
IMPORTANCE 50
RELEVANCE 30
NEUTRAL IMPACT
Tencent Holdings' agreement with Google to avoid competing with the Play Store could be examined further, but the immediate impact on Tencent's stock is likely limited.
While Tencent's deal with Google could be subject to regulatory review, the short-term impact on Tencent's OTC stock is likely minimal as the primary focus is on Google's conduct.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40