JMP has downgraded Alphabet shares from market outperform to market perform due to concerns over the Department of Justice’s antitrust case against Google. A federal judge ruled in August 2024 that Google illegally held a monopoly in search and text advertising, leading to calls for divestment of its Chrome browser. Analyst Andrew Boone warns of significant impacts on Google’s revenue and distribution if severe penalties are imposed, particularly regarding revenue share contracts. Despite a 37% increase in shares in 2024, Boone advises caution until further clarity on the legal outcome, although most analysts remain bullish on Alphabet.
