Amid the ongoing lawsuit against Alphabet Inc. GOOGL GOOG by the U.S. Department of Justice, investors are advised to consider trimming their positions in the tech giant if its shares surge post the quarterly earnings announcement, CNBC reports.
"Investors should be careful," said CNBC host Jim Cramer, indicating the hardened position taken by Joe Biden‘s administration's Justice Department on mergers and acquisitions.
"If Alphabet goes up [post-earnings], we have to trim," he added.
Regulatory Overhang: The regulatory scrutiny on Alphabet, Google‘s parent company, is seen as a potential dampener for its stock’s upside. The lawsuit, which accuses the tech giant of anti-competitive practices, continues to cast a shadow over Alphabet’s future prospects.
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Investor Strategy: Given the regulatory uncertainties, investors are suggested to trim their Alphabet holdings if the company’s shares jump following strong quarterly earnings. This strategy aims to mitigate potential risks associated with the ongoing legal proceedings.
Alphabet announcement of the quarterly earnings could significantly influence investor decisions regarding their Alphabet holdings.
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