Pelosi Sells $GOOGL Right Before DOJ Files Lawsuit 🤨

Shares are down 4% on the news

Another day, another questionable, perfectly timed trade by the Queen herself, Nancy Pelosi. Remember when she sold 30,000 shares of GOOGL 0.00%↑ that totaled up to $3M? Well, news broke yesterday that the DOJ has opened up a formal lawsuit against the tech giant claiming it has a monopoly via its “Ad Technology Services”.

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The lawsuit alleges that Google’s online advertising tools not only prohibit competitors from entering the space but also blocks publishers from monetizing their own content. The DOJ goes on to say that Google knowingly uses its monopoly power to create this advantage and therefore must divest their tools to continue in their ads business.

So what does this mean for the stock? Well the short answer is: it’s not great, but not the end of the world. In 2021, Google’s ad search revenue accounted for $149B or 58% of their entire revenue for the year. Since the DOJ seems to be specifically targeting this part of their business, it definitely could hinder their revenue growth moving forward. Even if the lawsuit fails, GOOGL 0.00%↑ has been put on notice and therefore will be more cautious moving forward with their goals and products to ensure nothing looks too “monopolistic”.

Now onto Pelosi. As a reminder, last month Nancy Pelosi sold the majority of her Google shares three separate times.

• 12/20/22 - Sold 10,000 shares at $89/share

• 12/21/22 - Sold 10,000 shares at $89.50/share

• 12/28/22 - Sold 10,000 shares at $86/share

Her Google position now makes up ~4% of her entire portfolio and is currently trading ~$95/share. Now did she know this lawsuit was coming beforehand and that’s why she sold? Maybe. Regardless, we wanted to share the info here. I’ll be keeping an eye on GOOGL 0.00%↑ over the next few months and because of this new threat to the stock, our team will write up an analysis on what we believe will happen to Google moving forward.

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Cheers everyone!