Google (NASDAQ GOOG) has now been officially charged of violating the EU antitrust laws. The charge comes from the European union and it is sure to make a dent on the GOOG stock. Although the probing and dialogues about the same charges were on for some time, this is the first time it has been made official. And it is sure to have consequences for the California based search engine giants.
Here in this article, we will take a closer look at some of the major effect which would happen due to the charge. We would see why and how this charge is going to effect the GOOG stock. As an investor it would be pragmatic to know the stock reaction to such market news.
Google Stock (NASDAQ GOOG) has already underperformed in the previous quarter. The stock has been under performing by around 16 percentage points which is quite a bit. Also, Google recently had a new addition in its executive room. A new CFO was appointed. Under such changing times, Google would have done well to avoid the antitrust charges.
Google Inc (NASDAQ GOOG) News: Antitrust Laws
Google has been accused of positioning and displaying certain types of ads more prominently on their website. The allegation is more specific to the online shopping results from Google which tend to increase Google’s own revenue.
The allegations claim that the search engine site does not really do what is best for the users, and in fact posts some results which are rather irrelevant. If proven true, it would be a huge blow for NASDAQ GOOG as it would lose not only market value but also users’ confidence.
Google Inc Financial News (NASDAQ GOOG)
Google (NASDAQ GOOG) remains a top technology company which has a lot of potential in the long term. But is it a good stock for the short term? That question is still to be answered.
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