Daniel Ho, Tesla’s former head of vehicle programs and new product introduction, has joined Alphabet’s Waymo as program director. This move comes amidst a wave of departures from Tesla, including several high-profile executives, following layoffs and a focus on the Robotaxi program.
A U.S. District judge has ordered Alphabet, Inc. (GOOG, GOOGL) to open its Google Play Store to competitors, a major victory for developers and a potential shift in the mobile app market. The ruling requires Google to allow third-party app stores on Android devices and grant them access to the full catalog of Google Play apps. This decision could lead to increased competition and potentially lower prices for consumers.
This week saw a mix of optimism and caution in the AI sector, with industry giants like Nvidia, Microsoft, and Alphabet experiencing stock fluctuations driven by AI’s potential and valuation concerns. While AI is a hot trend, investors are weighing the long-term benefits against potential overvaluation and regulatory challenges.
Recent insider stock sales by prominent figures at Dell, Alphabet, NVIDIA, and Bank of America have raised eyebrows among investors. While these sales don’t necessarily signal impending doom for these companies, they do provide an interesting insight into the market and offer potential trading opportunities.
Analysts have offered contrasting opinions on Alphabet, the parent company of Google, with Cantor Fitzgerald maintaining a Neutral rating while Wedbush reiterates an Outperform rating. The contrasting opinions are influenced by the ongoing antitrust trial against Google and the company’s ongoing investments in artificial intelligence (AI).
Despite recent rulings against Alphabet in antitrust lawsuits, an analyst believes Google may escape major penalties due to the complexity of the cases and the potential for lengthy legal battles. The analyst predicts a possible network spinout as a favorable outcome for Google, but acknowledges the possibility of a multi-billion dollar fine.
Needham analyst Laura Martin reiterates her ‘Buy’ rating on Alphabet Inc (GOOGL), highlighting the company’s strong position in the evolving AI landscape and its robust growth prospects driven by advertising, cloud infrastructure, and YouTube. She expects Google to be a major beneficiary of the burgeoning Generative AI market and projects significant revenue growth in 2024.
Gene Munster, managing partner of Deepwater Asset Management, believes a potential breakup of Alphabet Inc. (Google) could lead to a 20% value increase for the company. He suggests that separating Google’s ad network, which has been on a decline, could be the key to unlocking this value. While the probability of Google voluntarily breaking up is low, analysts and investors are increasingly discussing the potential benefits of such a move, particularly in light of the DOJ’s ongoing investigation into Google’s search dominance.
The U.S. Department of Justice is reportedly considering breaking up Google after a recent antitrust ruling against Alphabet. The potential breakup could involve divesting Android and Chrome, marking a significant move against tech giants since the Microsoft antitrust case in the late 90s. The DOJ is also exploring less drastic options, but the focus on Google’s dominance in search and advertising is clear.
Cathie Wood’s Ark Invest made significant trades on Monday, acquiring shares of Alphabet and Robinhood. The firm purchased Alphabet shares through its ARKQ and ARKX ETFs, while Robinhood shares were bought through ARKK, ARKW, and ARKF. These trades come amid Alphabet’s relatively low valuation compared to other tech giants and Robinhood’s strong Q2 earnings performance.
