Alphabet stock could tumble 25% in a ‘black swan’ scenario that forces it to divest Google Chrome, Barclays says

From Yahoo Finance.: 2025-06-03 19:57:00

Barclays warns of a potential 25% stock plunge for Alphabet if forced to sell Chrome amid antitrust trial. OpenAI and other tech firms show interest in buying the platform. Divesting Chrome could cut earnings-per-share by over 30% given its 35% contribution to Google’s search revenue and 4 billion users.

Analysts consider a Chrome divestiture scenario as a “black swan” event that could cause a 15%-25% stock decline. Google may have to license its index to competitors or phase off traffic acquisition contracts, leading to a potential 5%-10% hit on stock value. Department of Justice accuses Google of subverting competition for over 15 years.

Alphabet plans to appeal after disagreeing with the antitrust ruling that suggests divesting Chrome and Android. The company believes such a proposal would harm businesses and increase cybersecurity risks. Department of Justice claims Google has subverted competition for more than 15 years.



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