Lawsuits against companies seem to be a recurring topic in 2022, as Alphabet Inc’s (NASDAQ: GOOGL) is potentially staring down the barrel of one. Namely, a law firm is preparing two suits against Google, one in British and the other in Dutch courts.
The claims will be up to €25 billion ($25.4 billion) over digital advertising practices on behalf of publishers, according to a report published by Reuters on September 13.
At the time of writing, in the premarket session, shares of GOOG are slightly up, by 0.43%, despite the negative news of the lawsuits emerging.
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GOOG chart and analysis
In the last month, GOOG has been trading in a wide range from $105.78 to $123.26, mainly staying below all moving averages. Furthermore, technical analysis indicates the following key levels to keep an eye on.
To the upside, the first resistance level is at $112.49, with the next at $113.37, a break above either of these points could indicate a further leg up. However, a retest of a 3-week high at $116.60 could be difficult in subsequent trading sessions, depending in great part on inflation data that is set to come out on September 13.
On the downside, the first pivot point is at $110.80, with a one-month low at $105.78, representing a major support level.
TipRanks analysts rate the shares a ‘strong buy,’ with the average price in the next 12 months reaching $144.64, 29.29% higher than the current trading price of $111.87. Notably, out of 11 TipRanks analysts covering the firm, all have given a buy rating.
An additional worry for GOOG shareholders could be the recent news that the firm canceled the development of the Pixelbook laptop and has dismantled the team working on this hardware project, according to a report by The Verge on September 12.
Regardless, Google is still one of the most innovative companies in the world. For existing shareholders, there is little reason to abandon the stock, but for potential new ones, possible volatility after the news of the suist are digested by the markets could offer potential entry positions.
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
