Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) makes about 80% of its revenue from advertising. But the company is facing forces that could disrupt its business model and hurt GOOG stock. Ongoing legislation in the U.S. and E.U. regulatory actions could prevent Google from benefiting from its “gatekeeper” status with online ads.
For example, if you do a search for a location, Google Maps may not be the prioritized option that you use, as author Bohdan Kucheriavyi points out on Seeking Alpha. He says that Google’s model could change forever and that it “[risks] losing a significant portion of its income.”
He paints a pretty drastic scenario where Google could be hobbled by these regulations. Nevertheless, he also points out that Alphabet is fighting the implementation of these laws and regulations. They may not even come into effect in the E.U., where most of its risk now seems to be.
Where This Leaves Investors in Alphabet Stock
The post Alphabet Stock Looks Cheap as Fears of Google’s Demise Are Overdone appeared first on InvestorPlace.