Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Politics

Should Google consider breaking up? Analyst says it’s the ‘best thing to do’

admin by admin
April 25, 2025
in Politics
0
Should Google consider breaking up? Analyst says it’s the ‘best thing to do’
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Alphabet Inc (NASDAQ: GOOGL) has been contending with the Department of Justice over its proposal to break up the company, citing the firm’s illegal monopolies in areas like search and advertising. 

However, doing what the DOJ is asking may actually prove to be a positive for Google in the long run, says Gil Luria, a senior analyst at D.A. Davidson. 

“The best thing Google could possibly do is lean into what the DOJ is asking them to do, and just break up the company,” he told CNBC in an interview this week. 

Luria’s remarks arrive at a time when Google shares are grappling with a tariffs-driven retreat in the US tech stocks.

At the time of writing, GOOGL is down nearly 20% versus its year-to-date high. 

Why does Luria want Google to break up?

Luria is in favour of a breakup since Google’s search business is wrestling with a bunch of headwinds in 2025. 

For starters, AI-enabled assistants, particularly the world-renowned ChatGPT, are stealing users from Google Search, which may eventually drive advertisers to OpenAI as well. 

“At some point, OpenAI is going to turn on advertising, and advertisers are going to start shifting some of their spend away from Google. It could very well happen later this year,” the analyst added. 

Against such a backdrop, he recommended that Google break up to free its other businesses from the search-related overhang. 

Luria’s view on Google’s other businesses

According to Gil Luria, the tech behemoth has multiple other immensely valuable businesses. These include YouTube, Google Cloud, and Waymo. 

In fact, he expects the value of the company could even double if Google were to break up. 

Investors should note, however, that none of the titan’s other segments contribute nearly as much to its overall revenue as “Search”. 

Waymo is still unprofitable, and the cloud business has turned profitable only recently. So, the search unit is pretty much the profit engine for Google. 

Google’s Q1 earnings highlights

In related news, Alphabet Inc reported its financial results for the first quarter on April 24th. Here are the firm’s key Q1 numbers:

  • $90.23 billion in revenue – better than $89.12 billion expected
  • $2.81 a share of adjusted earnings – better than $2.01 expected
  • $8.93 billion in YouTube ads revenue – weaker than $8.97 billion expected
  • $12.26 billion in Google Cloud revenue – marginally below $12.27 billion expected
  • $13.75 billion of traffic acquisition costs – higher than $13.66 billion expected

While the multinational topped estimates for overall profit and revenue in the fiscal first quarter, D.A. Davidson continues to rate Google stock at “neutral” with a price target of $160, which indicates potential downside of more than 5% from here. 

The post Should Google consider breaking up? Analyst says it’s the ‘best thing to do’ appeared first on Invezz

Previous Post

T-Mobile falls 6% on lagging phone subscriber growth; analysts acknowledge market strength but say TMUS is overvalued

Next Post

Weak Q2 guidance drags Intel shares; analysts cite tariffs, shrinking market share as ongoing risks

admin

admin

Next Post
Weak Q2 guidance drags Intel shares; analysts cite tariffs, shrinking market share as ongoing risks

Weak Q2 guidance drags Intel shares; analysts cite tariffs, shrinking market share as ongoing risks

Trending News

Swiss president says deal with EU possible this year despite immigration hurdle

Swiss president says deal with EU possible this year despite immigration hurdle

October 28, 2024
Trump holds talks with top CEOs amid low confidence, recession risks

Trump holds talks with top CEOs amid low confidence, recession risks

March 11, 2025
Centrica hit, Next, JD Wetherspoons rejoice: how UK’s record-breaking April sun impacted business fortunes

Centrica hit, Next, JD Wetherspoons rejoice: how UK’s record-breaking April sun impacted business fortunes

May 8, 2025
Subscribe to Insightful Word


    Recent News

    XRP whales buy $1.9 billion as price clings to $2.18 amid long-term selling

    XRP whales buy $1.9 billion as price clings to $2.18 amid long-term selling

    June 7, 2025
    Beyond tariffs: Lululemon stock’s bigger problem is growth fatigue at home

    Beyond tariffs: Lululemon stock’s bigger problem is growth fatigue at home

    June 7, 2025
    Gemini crypto exchange planning to go public following Circle’s IPO success

    Gemini crypto exchange planning to go public following Circle’s IPO success

    June 7, 2025
    Top 2 private equity stocks to buy for the second half of 2025

    Top 2 private equity stocks to buy for the second half of 2025

    June 7, 2025

    Recent News

    XRP whales buy $1.9 billion as price clings to $2.18 amid long-term selling

    XRP whales buy $1.9 billion as price clings to $2.18 amid long-term selling

    June 7, 2025
    Beyond tariffs: Lululemon stock’s bigger problem is growth fatigue at home

    Beyond tariffs: Lululemon stock’s bigger problem is growth fatigue at home

    June 7, 2025

    Latest News

    • XRP whales buy $1.9 billion as price clings to $2.18 amid long-term selling
    • Beyond tariffs: Lululemon stock’s bigger problem is growth fatigue at home
    • Gemini crypto exchange planning to go public following Circle’s IPO success

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.