The past few years have seen a several regulators look to go after the “big tech” companies. The issues range from monopoly power to how products and services are bundled in a way that prevents competition.
While the European Union has been heavy on using its regulatory power, the United States has been far lighter. However, the Department of Justice is looking at a potential breakup of tech giant Alphabet (GOOG), parent company of Google and Youtube, among others.
What this breakup would look like remains to be seen. For now, Google has joined other massive big tech companies in securing nuclear energy sources to power data centers for its latest AI offerings.
That’s a strong sign that, no matter what happens to the company, there’s still some big growth behind it.
The antitrust news has knocked Google down well off its highs, but shares have already started to trend higher.
Action to take: Among the big-cap tech stocks, Google may offer the best return potential into next year. Besides being knocked down, this industry leader trades at just 24 times earnings. Shares even pay a 0.5% dividend, which could increase over time.
For traders, a further upside into the end of the year looks likely. The January 2025 $180 calls, last trading for about $5.00, could see mid-double-digit returns on a further trend higher into next year.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.