Why Chrome Divestiture Worries Are Exaggerated - Google Remains A Strong Buy

Millennial Dividends
7.68K Followers
(12min)

Summary

  • Google's stock faces pressure due to DOJ's proposed antitrust remedies, including Chrome divestiture.
  • Despite regulatory challenges, Google continues to deliver strong earnings, with Q3 2024 revenue up 15% year-over-year and operating margins at an all-time high.
  • The likelihood of a Chrome divestiture is low; softer remedies like restricting exclusive agreements and opening Chrome to third-party search engines are more probable.
  • With a P/E ratio of 21.9x and potential for 21% annual returns, I find the risk/reward attractive and continue to add to my position.
Google apps on Android phone

ymgerman/iStock Editorial via Getty Images

Google's stock (NASDAQ:GOOGL) (NASDAQ:GOOG) is once again under pressure following the recent development in the antitrust case, as the DOJ has proposed remedies, such as a forced divestiture of Chrome, potential Android sale, restrictions on default search and imposing restrictions

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7.68K Followers
I’m a Financial Analyst at a Fortune 500 company, investing with a long runway—30 years to retirement and plenty of compounding ahead. I write about building a thoughtful portfolio that balances strong growth potential with solid fundamentals. My focus is on high-quality businesses, mostly in the U.S. and Europe—companies with staying power, industry-leading profitability, low leverage, and room to grow. I’m especially interested in portfolio strategy, capital allocation, and what makes a business truly worth holding for the long haul. Investing, for me, is about more than just returns—it’s a way to challenge my thinking, stay curious, and move steadily toward financial independence.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of GOOGL, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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