By
Godfrey Benjamin
April 18th, 2024
Alphabet stock faces future threats after South Korea decided to fine one of its subsidiaries, Google, due to its market dominance.
Alphabet Inc (NASDAQ: GOOGL) stock closed yesterday trading at $2,846.65, up 1.03%. Monday’s gains extended during today’s premarket trading session, as Google (GOOGL) stock has added approximately 0.08% and traded around $2,848.83 according to metrics provided by MarketWatch.
The day was not all rose for the GOOGL stock on Monday as investors had to deal with a $177 million fine issued by South Korea’s regulator. According to news outlet CNBC, Google allegedly used its market position to block smartphone makers like Samsung from using OS developed by rivals, according to the South Korean Fair Trade Commission.
The South Korean regulator was keen to point out that Google has hindered OS development by rival companies by using its market dominance to stifle competition.
GOOGL stock has so far gained 62.42% year to date and approximately 88.67% in the past year. Up approximately 16%, and 3% in the past three months and one month respectively, GOOGL stock has lost around 0.98% according to market analytics provided by MarketWatch.
The meteoric rally during the pandemic has seen Alphabet’s market cap reach $1.89 trillion as of today. With 301.08 million outstanding shares, GOOGL shares have ranged between $1,402 and $2,925 in the past 52 weeks.
As a technology-based company that has been providing critical services to revamp the global economy from Covid devastations, Wall Street analysts are optimistic its stock market will continue to rally in the coming quarters.
A study conducted by MarketWatch indicates 47 ratings gave an average rating of Buy to GOOGL shares.
Google (GOOGL) Stock Market Outlook
Alphabet stock faces future threats after South Korea decided to fine one of its subsidiaries, Google, due to its market dominance. However, the company’s spokesperson argued that its software has significantly helped smartphone companies including those in South Korea develop and become innovative.
“The KFTC’s decision released today ignores these benefits and will undermine the advantages enjoyed by consumers. Google intends to appeal the KFTC’s decision,” the spokesperson told CNBC in a statement.
The fine did not have a major impact on the company’s stock market due to several factors. However, on the top list is the fact that Alphabet is a major global company that reported revenue of $61.88 billion in the last quarter.
However, it is a call for an alarm to investors as the possibility of more countries following the same path and reducing their market cover remains high.