From Nasdaq: 2025-04-27 15:41:00

Alphabet and Meta Platforms are facing antitrust litigation for their dominance in internet search and social media, causing their stocks to drop by 27% and 32% respectively. The outcome could involve selling key assets, but investors may find it beneficial to buy the dip on these AI giants due to potential growth opportunities.

Antitrust cases against Alphabet and Meta Platforms could lead to mandated divestitures or sales of key assets. Alphabet has already lost two cases, while Meta Platforms faces a new antitrust case. However, both companies have strong network effects that could mitigate the impact of any breakup or spinoff.

Alphabet’s AI opportunities include cloud growth, autonomous ride-hailing, quantum computing, and competitive AI models. Meta Platforms, on the other hand, has a hardware business, open-source AI model, and AI integrations in its social media apps. Both companies are trading at compelling valuations with potential for long-term growth in the AI sector.

Investors should not panic about the antitrust cases against Alphabet and Meta Platforms. Even if aggressive remedies are mandated, it could benefit shareholders in the long run. Tuning out the noise and taking a long-term view on these powerful tech companies is advisable for investors looking to capitalize on potential growth opportunities.



Read more at Nasdaq: 2 Magnificent AI Stocks Down 27% and 32% That Investors Will Wish They Bought on the Dip