Alphabet’s Google (GOOG, GOOGL) faces a probe by the Department of Justice over antitrust concerns. This is the latest of a slew of tech companies who have been subject to regulatory overhand. RBC Capital Markets equity analyst Brad Erickson joins Catalysts to discuss why the regulatory challenges facing Big Tech companies should have little to no impact on investment strategies.
Erickson explains that the Department of Justice is currently drafting a proposal for the judge in the default search case, outlining how they plan to “remedy Google’s ability to secure search status” on smartphones. The DOJ has until December to submit this proposal, with the judge expected to rule by August 2025. However, Erickson notes that Google’s planned appeal could extend the legal battle for several years. Due to this lengthy process, he believes Google’s business “isn’t fundamentally about to change in sort of a seismic way,” making the stock attractive at current levels.
Addressing the broader regulatory landscape across the tech sector, Erickson states, “Our kind of holistic view across the space, certainly for the companies we follow like Amazon (AMZN), Google (GOOG), and Meta (META) … the businesses are so far down the road. The train has so far left the station that unwinding the technology and the intricacy and the complexity of what these companies have built to … drive their businesses, I don’t know if it’s totally possible to unpack that.”
For more expert insight and the latest market action, click here to watch this full episode of Catalysts.
This post was written by Angel Smith