American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

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

by admin April 26, 2025
April 26, 2025
Should Google consider breaking up? Analyst says it’s the ‘best thing to do’

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

0
FacebookTwitterGoogle +Pinterest
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

Related Posts

Short TGT: Target Corp. Faces Continued Pressure after...

December 19, 2024

JD.com, Freshippo step up to support struggling Chinese...

April 12, 2025

Here’s why the Nifty 50 Index may surge...

June 6, 2025

Figs stock price sits in a range: will...

December 31, 2024

Reddit pops 48% in NYSE debut after selling...

March 27, 2024

AMC stock price forecast: will it short squeeze...

February 24, 2025

Sell these overvalued Nasdaq 100 stocks at their...

February 20, 2025

A year after Silicon Valley Bank failed, another...

March 3, 2024

Undervalued but poised for growth: Simply Good Foods...

November 14, 2024

Could the Air India Ahmedabad crash derail its...

June 14, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Talen Energy surges 25% to ATH after strategic natural gas power plant acquisition

      July 20, 2025
    • US visa bans on Brazilian judges spark diplomatic rift, cloud economic ties

      July 20, 2025
    • Trump sues Murdoch and News Corp over Wall Street Journal’s Epstein report

      July 20, 2025
    • The new global demographic challenge: not too many, but too few

      July 20, 2025
    • Kraft Heinz plans breakup, weighs $20 billion grocery spin-off: report

      July 13, 2025

    Categories

    • Business (3,454)
    • Investing (2,644)
    • Latest News (2,021)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved