Alphabet Google Stock GOOG, Giant Profit Engine Will Continue | Risks:  EU & US Antitrust Lawsuits
Channel: DanMarket Investor Channel (DanMarketL)
Date: 2021-09-18

Alphabets Inc., formerly known as Google Inc., is well known for its Google search engine.  They derive most of their revenues from internet advertising which is a fast-growing segment of the world economy.  Alphabets’ market cap is about $1.9T.  With a company that big, how is it going to move fast and generate good returns for the investors?  After doing my deep-dive analysis of Alphabet, I found that the EPS of Alphabet has been growing very fast in the last 5-6 years.  Most importantly, its stock price has been growing much faster than the broad market, which makes it a good investment choice.   The antitrust lawsuits, however, might be Alphabet's Archilles's heel.   

The worst-case scenario for GOOG's lawsuits is that certain parts of GOOG's operations might be separated into different companies.  When AT&T was ordered to break up into Baby Bells back in 1984, the resulting stocks of all the Baby Bells actually performed very well a few years after the breakup.  It is possible that after a big company is divided, the sum of the parts can be worth more than the original company.  I am not saying whether GOOG should be divided or not, I am just refering to a historical event related to AT&T.  See the following article on the AT&T breakup and the values of the Baby Bell stocks:

https://www.spokesman.com/stories/1996/may/25/att-rewards-steady-investors-shares-held-since/

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