NEW DELHI New Delhi: The US Department of Justice (DOJ) has proposed to sell the Chrome web browser to Google in a bid to restore competition in the online search market, according to a report on Friday, whose business model of the Sundar Pichai-run company has been hit. And there will be a deep impact on stock valuations. Shares of Google's parent company Alphabet fell more than 4.56 percent on Thursday (US time), the biggest decline since January 2024. The decline wiped out more than $120 billion in market capitalization, sending Alphabet's valuation below the $2 trillion mark.
According to Murthy Grandhi, company profile analyst at GlobalData, Google Chrome captures about two-thirds of the global browser market, so the implications of a forced sale for Alphabet's business model and stock valuation are very serious. According to reports, Chrome has a market valuation of $20 billion or more. “It's more than just a browser — it's a vital link in Alphabet's ecosystem, connecting users to services like Gmail, Google Drive, and YouTube. Chrome helps drive traffic to Google's platform and serve its advertising,” Grandy said. generates substantial advertising revenue by collecting user data to improve algorithms.” For the nine months ending September 30, Google generated an estimated $192 billion in revenue from Google Ads
Grandy said, “If it is forced to sell Chrome, Alphabet will lose an important channel for driving traffic to its search engine and services. However, the company is taking advantage of this challenge by leveraging artificial intelligence (AI) and cloud computing.” can accelerate diversification and innovation in other high-growth sectors.” As of September 30, the company spent $36 billion in research and development, which is 14.2 percent of its revenue ($253.5 billion). Additionally, Alphabet's diverse portfolio, spanning hardware, autonomous driving technology and other ventures, serves as a hedge against disruptions to its core advertising business. By continuing to expand into emerging markets and technologies, Alphabet can reduce its dependence on any one revenue source. Grandy said, “Beyond Alphabet, the DOJ's action could set a precedent for addressing monopolistic practices in the tech industry. The divestiture of Chrome could create a more competitive browser market, spur innovation and give consumers more choices.” Will meet.”
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