“We believe that the DOJ’s proposals, if implemented as they are, would have a material impact on Alphabet’s cash engine, Google Search,” says Khan in a Nov 22 note.
Alphabet, the holding company of tech giant Google, remains “materially undervalued” despite the US Department of Justice’s (DOJ) ongoing antitrust case against the company, says Morningstar Equity Research analyst Malik Ahmed Khan.
The DOJ submitted its proposal on Nov 20 calling for Google to divest its Chrome browser, along with reduced self-preferencing, the removal of search agreements and greater data-sharing with rivals.
