‘It’s another loser case by the government. And by the way, the sum of the parts is worth far more than $1,500.’
That’s CNBC’s Jim Cramer waxing bullish on Google parent Alphabet
in light of the government’s antitrust suit against the company. “If the Department of Justice is going that route, then they’re just a great investment banker,” he added.
The stock, the “Mad Money” host explained on Tuesday, would go from “buy to a strong buy” if the case were ultimately to lead to a break up.
“I’ve been saying over and over again, they ought to break this company up and bring out value,” Cramer said. “Ultimately, Google, if they break it up, then you own the stock. If they don’t break it up, then you own the stock. It’s a pretty good situation.”
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Shares of Alphabet, which are up about 15% this year to easily outperform the S&P
bounced off lows Tuesday to push higher after the Justice Department formally filed the charges.
“Google is a monopolist in the general search services, search advertising, and general search text advertising markets,” according to the filing in federal court in Washington, D.C.. “Google aggressively uses its monopoly positions, and the money that flows from them, to continuously foreclose rivals and protect its monopolies.”
And there’s more on the way as Big Tech continues to come under fire.
This suit is expected to be followed by legal actions by the Federal Trade Commission against Facebook
later this year. Amazon
are also being investigated for their business practices.