In a recent Bloomberg interview, Alphabet Inc. (NASDAQ:GOOG) CEO Sundar Pichai emphasized that resolving Google’s antitrust challenges will take years, dismissing the notion that they pose an immediate threat to the company.
“It’s going to take time for it to play out, but we think it really harms our ability to innovate on behalf of our users, we are going to be vigorous in defending ourselves.”
Sundar Pichai
Google is involved in two antitrust trials initiated by the US Justice Department—one targeting the company’s dominance in digital advertising and the other focusing on online search.
In the search case, which Google lost, Pichai acknowledged the ongoing remedies phase but noted,
“We definitely disagree with the ruling… We will appeal, and this process will likely take many years.”
Sundar Pichai
The ads case, still ongoing, could lead to a government decision to break up Google if the court rules against the company. Pichai expressed that Google would appeal such a decision, arguing that it competes fairly with rivals like Meta Platforms Inc. (NASDAQ:META) and Amazon.com (NASDAQ:AMZN).
To highlight how drawn-out these legal matters can be, Pichai referenced Google’s recent success in the European Union, where the company overturned a €1.5 billion fine, explaining that the victory came “more than four years” after the fine was imposed.
He acknowledged that “with our scale and size, I think scrutiny is inevitable,” but expressed confidence, saying, “given that we are focused on innovating using technology, we’ll do well in the long run.”
Alphabet Inc. (NASDAQ:GOOG) Posts Strong Q2 2024 Growth
Alphabet Inc. (NASDAQ:GOOG)’s Q2 2024 results were largely driven by strong growth in its Google Cloud segment, which grew by 28%. Despite challenges in the broader economy, the company’s core search business remained stable.
Alphabet Inc. (NASDAQ:GOOG)’s significant investment in artificial intelligence (AI), especially through its Bard AI platform and improved cloud computing services, is expected to drive future growth. These initiatives position Alphabet Inc. (NASDAQ:GOOG) as a leader in the fast-growing AI sector, which is expected to reshape industries and open new revenue opportunities.
With a forward P/E ratio of 18.62 and a market capitalization of over $2 trillion, Alphabet Inc. (NASDAQ:GOOG)’s solid financial position allows it to keep investing in innovation while managing economic uncertainty. Additionally, its dominance in digital advertising strengthens its ability to generate revenue, ensuring it remains adaptable to shifting market conditions.
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