Google-Parent Alphabet Reportedly Lobbies Against Breakup Of Company: Retail Unmoved

Alphabet, Inc. (GOOGL) (GOOG), which faced increased antitrust scrutiny during the final stretch of former President Joe Biden’s tenure, is eyeing a reprieve. 

Representatives for the Google parent met with officials of President Donald Trump’s administration last week to urge them to back down on the Department of Justice’s (DOJ) call to break up the company, Bloomberg reported. 

The Sundar Pichai-led company reportedly made their case by suggesting that Google is critically important for the U.S. economy and that national security requires a softer touch. 

Delving into the anti-trust lawsuit filed by the DOJ in 2020, Judge Amit Mehta of the United States District Court for the District of Columbia said in August that Google held a monopoly in the search market. 

As part of the steps to prevent Google’s self-referencing, the DOJ sought in the “Initial Proposed Final Judgment” filed in November that Google divest its Chrome browser and stay away from the browser market for five years.

The judge is set to make a final decision following hearings scheduled for April.

The Bloomberg report said Google’s latest overtures stem from the fact that the antitrust case against it is in its second stage, known as the “remedy” phase, during which the court can call for sweeping changes at the company. 

On Stocktwits, retail sentiment toward Alphabet stock remained ‘bearish’ (38/100) but the message volume stayed at ‘high’ levels.

Concerns regarding the potential fallout of the Trump tariffs have dampened sentiment.  

The broader market is lower for a third straight session despite Commerce Secretary Howard Lutnick suggesting in a Fox News interview that Trump will likely work with his Canadian and Mexican counterparts to resolve the issue.

"So somewhere in the middle will likely be the outcome — the president moving with the Canadians and Mexicans but not all the way," he added. 

A bearish watcher forecast a downtrend in the works.

Another user braced for further sell-off in April when the verdict on the DOJ lawsuit is out. 

Alphabet stock fell 0.78% at $169.59 in early afternoon trading. The stock is down about 10% year-to-date.

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