Many companies have made investment in GOOG stock but now it seems to be at risk because department of justice has filed a case against it. The case is filed with the aspect of antitrust. The case was filed against Alphabet Inc., which is the holding company of Google. The department of justice has claimed that Google has adopted anticompetitive practices by opening a holding company.
After the filing of the lawsuit, an increase is found in the GOOG stock, which has risen up to a few percentage. The digital ad peer Snap did not take care of the suit and it has shown the earnings of Google by saying that it is an age of digital ad boom. It has been estimated that GOOG stock will keep rising in spite of the lawsuit against Google.
Department of justice(DOJ) has filed a lawsuit against the company but it will not have any effect on the earnings of the company. It is so because DOJ may have the arguments regarding the domination of Alphabet Inc. on making searches. This will influence the spread of information over the internet. Alphabet may keep its point that it has competition with many companies and the strongest competitor is Bing. The company will also say that there is no political agenda and the company is not biased.
The company may have to pay a huge fine and some restrictions may also be forced upon it. This may have a good or bad impact on revenue and earnings of the company. Google search engine will still dominate the market and people will keep using it for a long time. Google cloud will also prosper as the company is working on it. There will be no effect on Google cloud and Waymo, the self-driving car company of Google. GOOG stock will also not be affected by this lawsuit.
Lot of earnings
The investors also may not take care of the lawsuit and may keep investing after getting the report of huge earrings. The reason for these earnings will be the digital ad boom. Covid-19 has slowed down the global economy due to which the advertising industry faced a huge loss as many companies stopped producing and publishing ads. Later on, when the economic activities were rebounded, companies started advertising their products again.The advertising has been started through digital channels, which brought a boom in the industry. The social media platforms also helped in the booming up of the industry. All these things will increase the revenue of the industry. YouTube has also become a source of advertising and entertainment, which will also be a source of income. If you want to know more, you can check at https://www.webull.com/newslist/nasdaq-goog