Google needs ‘big bang breakup’ that would value its businesses at $3.7 trillion as AI threatens Search: Analyst

From Yahoo Finance: 2025-05-13 13:11:00

Alphabet investors urged to break up Google’s business for better valuation, as search engine dominance faces AI chatbot era challenge. US District Judge found Google guilty of illegal monopolization. DOJ seeks to split Google, focusing on Chrome, ad network, and possibly Android. Analyst suggests big bang breakup for Google’s businesses to maximize value.

Google should separate YouTube, Search, Google Cloud, Waymo, and AI segments to unlock higher valuation as individual entities. Alphabet stock trades at low multiple, below market average. Google’s businesses could fetch higher values if spun off separately. Analyst estimates $3.7 trillion valuation for Google’s businesses, compared to current $2 trillion market cap.

Google’s Search business faces decline as AI chatbots challenge its dominance. Apple’s testimony during antitrust trial signals potential shift away from Google Search. Activist investors unable to drive change due to insiders’ control. Founders Brin and Page may hold key to unlocking shareholder value. Analyst urges prioritizing investors over profit maximization. 1. The stock market experienced a sharp decline today, with the Dow Jones Industrial Average dropping by 500 points. This decrease was attributed to concerns over rising inflation and interest rates, causing investors to sell off their shares in tech and financial companies.

2. A new study has found that over 80% of Americans are not saving enough for retirement. The survey revealed that many people are not contributing to their retirement accounts regularly, leading to a shortfall in savings that could impact their financial future.

3. The latest unemployment numbers show a slight increase in jobless claims, with 400,000 new claims filed last week. This uptick in unemployment applications was unexpected and has raised concerns about the ongoing impact of the pandemic on the labor market.

4. In international news, tensions are escalating between Russia and Ukraine as Russian troops continue to build up along the border. The US and European countries have expressed support for Ukraine, warning Russia against any further aggression in the region.

5. A new study has highlighted the growing problem of food insecurity in the US, with over 40 million Americans struggling to afford enough food. The report found that low-income households and communities of color are disproportionately affected by food insecurity, underscoring the need for policy interventions to address this issue.



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