MK at confernece

Alphabet and the DOJ

By Tom Hancock, Ty Cobb and Anthony Hene

Insights

July 08, 2019

Summary

Shares in Alphabet have come under a good deal of pressure over the last year as investors process the implications of increasing regulatory scrutiny, culminating in reports this month that the U.S. Department of Justice (DOJ) is preparing for an antitrust probe into big tech. In this short piece, we explain why we believe Alphabet is appropriate for our Quality Strategy as an extraordinary company under a temporary cloud. Markets hate uncertainty; we believe that today’s price discounts the loss of an antitrust case and that this presents us with a long-term opportunity.

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Disclaimer: The views expressed are the views of the Focused Equity Team through the period ending July 2019, and are subject to changeat any time based on market and other conditions. This is not an offer or solicitation for the purchase or sale of any security and should not be construed as such. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities.
Copyright © 2019 by GMO LLC. All rights reserved.
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