"Google stock (GOOGL) has faced difficulties in the past. It decreased by over 30% in less than two months in 2022, resulting in a loss of billions in market value and wiping away significant gains in one correction. If past patterns are any indication, GOOGL stock is susceptible to unexpected, sharp drops. In particular, we identify the following risks: Antitrust Remedies: The Ad Tech Breakup Search Monopoly Erosion: Death by a Thousand Cuts YouTube's Diminishing Engagement Dominance"
"Details: Mandated divestiture of Google Ad Manager, accounting for an estimated 12% of Alphabet's revenue, alongside multiple compression resulting from the loss of synergies in the integrated ad stack. Segment Affected: Google Advertising Potential Timeline: Immediate; Q1-Q2 2026 Evidence: DOJ pursuing structural remedies, including divestiture, in the ongoing antitrust case related to Ad Tech; the remedies phase concluded in October 2025; Judge Leonie Brinkema determined that Google monopolized advertising technology markets. A final decision on remedies is expected in early 2026."
Google stock has shown significant volatility, including a drop of over 30% in less than two months in 2022 that erased billions in market value. Three major near-term risks exist: antitrust-mandated Ad Tech divestiture, erosion of search monopoly through enforced data sharing and distribution remedies, and declining YouTube engagement dominance. The Ad Tech divestiture could remove Google Ad Manager, roughly 12% of Alphabet revenue, and compress multiples by removing integrated ad-stack synergies. Court remedies already prevent exclusive search distribution agreements, and rivals such as OpenAI and Perplexity aim to expand share in the coming quarters.
Read at Forbes
Unable to calculate read time
Collection
[
|
...
]