Alphabet shares fall for a third straight session on Monday, Britain’s CMA investigating Google’s acquisition of Looker Data Sciences

December 3, 2019 8:14 am

Britain’s Competition and Markets Authority announced on Monday that it had embarked on an investigation into Google’s acquisition of big-data analytics company Looker Data Sciences.

Revealed in June, the $2.6 billion buyout deal is the first major acquisition for Google’s new cloud Chief Executive Officer, Thomas Kurian.

Alphabet shares closed lower for a third consecutive trading session on NASDAQ on Monday. It has also been the steepest daily loss since October 29th. The stock went down 1.15% ($15.04) to $1,289.92, after touching an intraday low at $1,281.31, or a price level not seen since November 4th ($1,276.36).

Shares of Alphabet Inc have risen 24.56% so far in 2019 compared with a 24.21% gain for the benchmark index, S&P 500 (SPX).

In 2018, Alphabet’s stock went down 1.03%, thus, it again outperformed the S&P 500, which registered a 6.24% loss.

The competition regulator said that it was reviewing if the cash deal could pose risks to competition in the United Kingdom or other markets.

Analyst stock price forecast and recommendation

According to CNN Money, the 41 analysts, offering 12-month forecasts regarding Alphabet Inc’s stock price, have a median target of $1,450.00, with a high estimate of $1,907.73 and a low estimate of $1,250.00. The median estimate represents a 12.41% upside compared to the closing price of $1,289.92 on December 2nd.

The same media also reported that at least 34 out of 44 surveyed investment analysts had rated Alphabet Inc’s stock as “Buy”, while 7 – as “Hold”.

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