In the past week, Alphabet has faced heightened scrutiny as a major antitrust trial began in the US focused on its digital advertising technology business, with the Department of Justice seeking remedies that could meaningfully reshape Google’s ad operations. This pivotal legal development has drawn increased attention to potential structural changes in the digital advertising market and competition among industry players.
Investor interest has surged around possible industry-wide effects, as the court’s evaluation of Google’s market position and competitive practices could set new precedents for the digital advertising sector.
We’ll explore how these intensified legal and regulatory risks may shift Alphabet’s investment outlook, particularly concerning its core advertising revenue engine.
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Owning Alphabet means believing that ongoing innovation in AI, YouTube, and Google Cloud will outpace risks from regulatory pressure and ad market shifts. The latest antitrust trial puts Alphabet’s digital advertising dominance under a microscope and introduces significant near-term uncertainty, as court-ordered remedies could alter the company’s most critical business line; this risk currently outweighs positive momentum from AI-driven growth or margin gains. For now, scrutiny around ad tech remains the biggest short-term catalyst and the major risk to watch.
Among recent announcements, the Magnite lawsuit over Google’s ad technology stands out for its direct connection to regulatory scrutiny. As legal outcomes unfold, potential changes to Alphabet’s ad stack or market position could influence its revenue mix and impact how quickly new AI or Cloud initiatives offset any headwinds.
Yet in contrast to the current optimism, investors should recognize the real possibility that regulatory intervention could force structural change to Alphabet’s business model and…
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Alphabet’s outlook anticipates $512.6 billion in revenue and $148.4 billion in earnings by 2028. Achieving this would require 11.3% annual revenue growth and a $32.8 billion earnings increase from the current $115.6 billion.
Uncover how Alphabet’s forecasts yield a $234.23 fair value, a 7% downside to its current price.
210 Simply Wall St Community members estimate Alphabet’s fair value from US$165.53 to US$291.20 per share. Ongoing regulatory risks around the ad business could significantly shape how Alphabet performs in the years ahead.