As the US Department of Justice (DOJ) proposes Google to divest Chrome web browser to restore competition to the online search market, it will have a profound impact on Sundar Pichai-run company’s business model and stock valuation, according to a report on Friday.Shares of Alphabet, the parent company of Google, declined more than 4.56 per cent on Thursday (US time), marking their steepest decline since January 2024. The drop wiped out over $120 billion in market capitalisation, dragging Alphabet’s valuation below the $2 trillion threshold.
According to Murthy Grandhi, company profiles analyst at GlobalData, with Google Chrome accounting for nearly two-thirds of the global browser market, the implications of a forced sale for Alphabet’s business model and stock valuation are profound. As per reports, Chrome has a market valuation of $20 billion or so.