From Nasdaq:

In 2023, tech stocks saw a boost due to the rise of artificial intelligence (AI), with Alphabet’s (NASDAQ: GOOG) stock hitting a 52-week high of $142.68 after rising from a 52-week low of $84.86. In 2024, the company faces upheavals such as phasing out third-party cookies from its Chrome browser, affecting its stock.

Alphabet’s decision to phase out third-party cookies from its Chrome browser could affect its shares, as online tracking has generated privacy concerns. Termed “Chrome-ageddon”, the move will eliminate the current targeting mechanism advertisers rely on. Alphabet will gradually phase out these cookies in the first quarter of 2024.

The Privacy Sandbox limits sharing of online activity data with third parties, giving Alphabet oversight of data collected from Chrome users. This incentivizes advertisers to continue spending with Alphabet, whose Q3 revenue of $76.7 billion was driven by advertising. Alphabet’s other challenge in 2024 is an antitrust lawsuit brought by the U.S. Justice Department.

Concerning the antitrust lawsuit, Alphabet recently lost a separate case related to its Android mobile app store. However, its search engine ad revenue, totaling $44 billion in Q3, outweighed non-advertising revenue of $8.3 billion. The suit’s outcome could range from a fine to forcing Alphabet to restructure its business.

Despite challenges in 2024, Alphabet remains a compelling growth investment. Its Q3 sales grew by 11% year-over-year and total assets amounted to $396.7 billion, with total liabilities totaling $123.5 billion. The global ad industry is estimated to rise to $966 billion by 2028, and AI industry is forecasted to grow 20-fold by 2030.

The Motley Fool Stock Advisor team highlights what they believe are the 10 best stocks for investors to buy now, with the Stock Advisor service having tripled the return of S&P 500 since 2002. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors, and they hold positions in and recommend Alphabet, Apple, and Microsoft.



Read more: Is Alphabet Stock a Buy for 2024?