Latest news with #AmitMehta
Yahoo
6 days ago
- Business
- Yahoo
Google's Black Swan Event and a 25% Loss: ETFs to Consider
Alphabet's GOOGL shares have mirrored the broader market's volatility in 2025. After surging 37% in 2024, the tech giant's shares carried that momentum into early 2025, rising another 8.9%. Shares of the company reversed course in early February, falling around 30%, due to escalating trade tensions. However, by April, Alphabet shares rebounded on easing trade tensions, adding 17% (as of June 2). GOOGL, which belongs to the Zacks Internet - Services industry, has a Zacks Rank #3 (Hold). It has a strong Growth Score of A. Uncertainty continues to loom over the tech giant, as Google and the Department of Justice concluded closing arguments in the remedies phase of the antitrust trial last Friday. In what Barclays called a 'Black Swan Event' for the tech giant, the potential impact of the legal order could have drastic consequences for the company. Google lost a landmark antitrust case brought by the U.S. Department of Justice (DOJ) in August 2024, with Judge Amit Mehta ruling that the tech giant had illegally monopolized the search engine market. According to analysts at Barclays, as quoted on Yahoo Finance, Alphabet shares could fall by 15% to 25% if Judge Mehta orders a divestiture of the Chrome browser. The divestiture could land a drastic blow to the company. Per Ross Sandler, an analyst at Barclays, a forced sale of Chrome could lead to a 25% drop in Alphabet's stock and potentially slash the company's EPS by as much as 30%, considering Chrome's massive user base of 4 billion and its contribution to 35% of Alphabet's search revenues. According to Reuters, the U.S. DOJ has proposed that Google be required to sell its Chrome browser and share search data with competitors, with Judge Mehta expected to issue a ruling by August. As per Sandler, the most likely buyers of Chrome can be well-capitalized AI companies such as OpenAI, Anthropic or perhaps Perplexity. In another development, this Monday, Alphabet agreed to spend $500 million to change its compliance structure as part of a settlement with shareholders, according to Yahoo Finance. The settlement is for a shareholder lawsuit that accused it of violating antitrust laws. Per Reuters, lawyers representing shareholders intend to request up to $80 million in legal fees and expenses, in addition to the $500 million settlement. The legal developments are likely to drive short-term volatility in the company's shares. Here, we have highlighted ETFs with double-digit exposure to Alphabet. IShares Global Comm Services ETF seeks to track the performance of the S&P Global 1200Communication Services 4.5/22.5/45 Capped Index with a basket of 68 securities. The fund has amassed an asset base of $415.5 million and charges an annual fee of 0.41%. IShares Global Comm Services ETF has an exposure of 11.97% in GOOGL. Fidelity MSCI Communication Services Index ETF seeks to track the performance of MSCI USA IMI Communication Services 25/50 Index with a basket of 104 securities. The fund has amassed an asset base of $1.49 billion and charges an annual fee of 0.08%. Fidelity MSCI Communication Services Index ETF has an exposure of 12.50% in GOOGL. Vanguard Communication Services ETF seeks to track the performance of the MSCI US Investable Market Communication Services 25/50 Index with a basket of 116 securities. The fund has amassed an asset base of $4.74 billion and charges an annual fee of 0.09%. Vanguard Communication Services ETF has an exposure of 12.49% in GOOGL. MicroSectors FANG+ ETN seeks to track the performance of the NYSE FANG+ Index with a basket of 10 securities. The fund has amassed an asset base of $445.9 million and charges an annual fee of 0.58%. MicroSectors FANG+ ETN has an exposure of 9.74% in GOOGL. Communication Services Select Sector SPDR Fund seeks to track the performance of the Communication Services Select Sector Index with a basket of 23 securities. The fund has amassed an asset base of $21.82 billion and charges an annual fee of 0.08%. Communication Services Select Sector SPDR Fund has an exposure of 8.71% in GOOGL. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Vanguard Communication Services ETF (VOX): ETF Research Reports Fidelity MSCI Communication Services Index ETF (FCOM): ETF Research Reports iShares Global Comm Services ETF (IXP): ETF Research Reports Communication Services Select Sector SPDR ETF (XLC): ETF Research Reports MicroSectors FANG+ ETN (FNGS): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Hindu
12-06-2025
- Business
- The Hindu
Google offers buyouts to workers; OpenAI in talks with Saudi Arabia, Indian investors to raise funds; Meta, TikTok challenge fees in EU court
Google offers buyouts to workers Google is offering buyouts to more employees in another round of layoffs as the tech giant awaits a court verdict in its search and ads antitrust lawsuit. The Sundar Pichai-led company has confirmed the news although it hasn't disclosed the number of employees who will be affected. The employees are spread across the search, advertising, research and engineering segments. U.S. District Judge Amit Mehta is deciding whether to ban Google's exclusive agreement with Apple which sets Chrome as its search browser. The judgment is expected to be given before Labour Day after which Google can appeal last year's decision where the company was defined as a monopoly. The federal judge ruled that Google's digital ads business was said to abuse its market power and tamp down on competition. In 2023, the company laid off 12,000 workers post a hiring splurge that Big Tech companies were on during the pandemic. OpenAI in talks with Saudi Arabia, Indian investors to raise funds OpenAI is reportedly in discussions with new investors including Saudi's PIF, India's Reliance Industries and existing shareholder United Arab Emirates' MGX to raise $40 billion in funds. The investors are expected to invest at least hundreds of millions of dollars each, a report by 'The Information' said. The funds will be used to develop AI infrastructure as a part of their Stargate venture which is in partnership with SoftBank. OpenAI CEO Sam Altman met with Indian IT Minister earlier this year, after which he also planned to meet the Abu Dhabi investment group MGX. The AI firm is also speaking with Coatue and Founders Fund to raise atleast $100 million each. The report also stated that OpenAI could be raising an additional $17 billion in 2027. OpenAI hasn't confirmed the reports yet. Meta, TikTok challenge fees in EU court Meta and TikTok are fighting EU regulators on a supervisory fee and that's levied and how it's calculated, in the second highest court in Europe. The social media platforms called the fee disproportionate and measured on a flawed methodology. The companies along with 16 other tech companies had to pay a supervisory fee which was 0.05% of their annual worldwide net income under the Digital Services Act that became a law in 2022. The fee intends to cover the EU's cost of monitoring their compliance with the law. The size of the annual fee is based on the number of average monthly active users for each platform. Meta said that it wasn't trying to avoid its share of the fee but it was questioning the way the amount had been calculated. A representative for TikTok said that the EU had counted users who logged into their phones and from their laptops twice.
Yahoo
11-06-2025
- Business
- Yahoo
Judge in Google antitrust trial presses DOJ on AI's role in future competition
The federal judge who will decide how to fix Google's illegal online search monopoly pressed for details on Friday about whether the tech giant's foray into artificial intelligence will further hurt its rivals. US District Judge Amit Mehta — who labeled Google a 'monopolist' in a separate trial that wrapped up last year — dug into the issue of whether court-ordered limits on AI-powered search would be effective as closing arguments in the seven-week remedy trial wrapped up in Washington court. 'Does the government believe that there is a market for a new search engine to emerge as we think of it today?' Mehta asked, according to Bloomberg. 'Do you think somebody is going to come off the sidelines and build a new general search engine in light of what we are now seeing happen in the AI space?' DOJ lawyer David Dahlquist responded that the 'short answer is yes' while describing so-called generative AI as the new 'gateway to search' for online users. 'We do believe that these remedies that will be proposed will allow that opportunity to occur,' Dahlquist said. 'The reason we are so focused on gen AI, and the reason you heard a lot of evidence about it, is because that is the new search access point.' The DOJ has asked Mehta to force Google to sell off its Chrome web browser and ensure it cannot use its AI tools to further entrench its illegal monopoly over the industry – among other proposed fixes. Google has recently overhauled its search product with controversial 'AI Overviews,' or automated summaries to user prompts that have replaced traditional 'blue links' at the top of results. Mehta has said he will make a final decision by August. The judge's focus on potential AI-related remedies during closing arguments wasn't a surprise, given the fact that the DOJ has pushed for forward-looking fixes since first outlining its proposal last fall. 'DOJ took a risk and made it the centerpiece of its remedy package,' said Paul Gallant, a policy analyst at TD Cowen. 'That really caught investors' attention last November and made it front burner issue for Google holders. Today, the judge is following DOJ down this AI path to see whether he can actually get there on the evidence and legal precedent.' Aside from a divestment of Chrome and AI-focused remedies, the DOJ has argued that Google should no longer be allowed to pay companies like Apple to ensure its search engine is set as the default option on most smartphones. The feds also want to force Google to share search data with rivals. Their proposal also suggests requiring Google to sell off its Android operating system if initial remedies prove ineffective. Google has pushed back, arguing the DOJ's proposals go far beyond the judge's initial ruling and would 'break these platforms.' The company has gone as far as to suggest that a forced breakup would jeopardize US national security and allow China to beat the US in the race to build advanced AI. Google also argued that it faces fierce competition from other AI-powered platforms, such as those offered by Sam Altman's OpenAI. During closing arguments, Google attorney John Schmidtlein said the company has already addressed AI-related search concerns by no longer pursuing exclusivity deals with wireless carriers and smartphone makers, including Samsung. However, Mehta expressed skepticism about Google's push for limited remedies focused on past misdeeds. 'It seems to me that to simply say, 'look, just open up the avenues of distribution,' without providing any further remedies that are forward-looking and that would allow competitors to actually be rivals here, sells the remedy portion of this short,' Mehta said at one point during Friday's hearing. Schmidtlein pushed back, declaring that there was 'no evidence that gen AI products have been harmed by any of the conduct issue in this case.' Earlier in the remedy trial, an OpenAI executive said that the company would be interested in acquiring Chrome if it were up for sale. The executive also acknowledged that OpenAI would benefit if it had access to Google search data.
Yahoo
07-06-2025
- Business
- Yahoo
Two private schools close in wake of Labour's VAT raid
Two prep schools have become the latest victims of Labour's VAT raid by announcing their closures as a result of the levy. Park Hill School in Kingston, Surrey, said the introduction of the 20pc tax on fees in January had led to a decline in pupil numbers meaning it was no longer financially viable to operate. Falcons School, a neighbouring school in Putney, south-west London, said a raft of tax changes including the VAT levy and increases to National Insurance alongside a higher minimum wage had 'intensified' a decline in pupil enrolment forcing it to close at the end of the academic year. It comes after figures this week revealed private school pupil numbers had fallen by more than 11,000 in England following the VAT raid on fees – four times more than government forecasts. There were around 582,500 pupils at English private schools in January compared to 593,500 at the same point last year, according to the Department for Education. Parents at Park Hill were told this week the 75-year-old school would be forced to close with children offered the opportunity to move to a nearby sister school. The decision came as a shock to many, with the school's website this week still advertising a recent open day for prospective pupils. The school had also written to parents in March to thank them for 'continued loyalty and support' in spite of the introduction of VAT and offered a 5pc discount to families who paid the following year's school fees early. However, on Wednesday, in a letter seen by The Telegraph, Amit Mehta, chief executive of Inspired Learning Group, which owns the school, said: 'Following careful reflection, we have made the strategic decision to relocate pupils from Park Hill to join our sister school, Westbury House, from January 2026. 'We are incredibly proud of everything Park Hill has achieved over the years. However, like many schools, it also faces challenges, and this evolution offers fresh opportunities for all our pupils.' Park Hill, which has 84 pupils aged between two and 11, will transition into a fully-fledged nursery which is exempt from VAT. Justin Spanswick, chief operating officer at Inspired Learning Group, said: 'The decision was made because of the downward trend in pupil numbers at Park Hill, due in part to the introduction of VAT on school fees.' He added the decision would also strengthen Westbury House 'in the current climate', with pupils moving to the school helping to shield it from the Government's tax rises. Falcons School decided to absorb the 20pc VAT levy in January and kept fees frozen at £6,270 per term in a bid to arrest a decline in pupil numbers. In March the school told the families of its 126 pupils that it was 'considering the future viability' of the school and that it was 'likely to close'. The school was taken over by Inspired Education Group in 2023 and made the decision to admit boys for the first time in an attempt to increase pupil numbers. A spokesman for the school said: 'As a result of the thorough consultation process, we have taken the difficult decision to close the school at the end of the academic year. 'The consultation took place as the school has been loss-making since we acquired it, with enrolment under 50pc over the last two years. THis has been intensified by the recent government changes such as VAT.' Ministers have admitted the Government expects 100 private schools to close as a result of its VAT raid. Analysis by the Independent Schools Council suggests this will lead to 40,000 pupils being displaced and 11,000 jobs being lost. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Yahoo
07-06-2025
- Business
- Yahoo
Two private schools close in wake of Labour's VAT raid
Two prep schools have become the latest victims of Labour's VAT raid by announcing their closures as a result of the levy. Park Hill School in Kingston, Surrey, said the introduction of the 20pc tax on fees in January had led to a decline in pupil numbers meaning it was no longer financially viable to operate. Falcons School, a neighbouring school in Putney, south-west London, said a raft of tax changes including the VAT levy and increases to National Insurance alongside a higher minimum wage had 'intensified' a decline in pupil enrolment forcing it to close at the end of the academic year. It comes after figures this week revealed private school pupil numbers had fallen by more than 11,000 in England following the VAT raid on fees – four times more than government forecasts. There were around 582,500 pupils at English private schools in January compared to 593,500 at the same point last year, according to the Department for Education. Parents at Park Hill were told this week the 75-year-old school would be forced to close with children offered the opportunity to move to a nearby sister school. The decision came as a shock to many, with the school's website this week still advertising a recent open day for prospective pupils. The school had also written to parents in March to thank them for 'continued loyalty and support' in spite of the introduction of VAT and offered a 5pc discount to families who paid the following year's school fees early. However, on Wednesday, in a letter seen by The Telegraph, Amit Mehta, chief executive of Inspired Learning Group, which owns the school, said: 'Following careful reflection, we have made the strategic decision to relocate pupils from Park Hill to join our sister school, Westbury House, from January 2026. 'We are incredibly proud of everything Park Hill has achieved over the years. However, like many schools, it also faces challenges, and this evolution offers fresh opportunities for all our pupils.' Park Hill, which has 84 pupils aged between two and 11, will transition into a fully-fledged nursery which is exempt from VAT. Justin Spanswick, chief operating officer at Inspired Learning Group, said: 'The decision was made because of the downward trend in pupil numbers at Park Hill, due in part to the introduction of VAT on school fees.' He added the decision would also strengthen Westbury House 'in the current climate', with pupils moving to the school helping to shield it from the Government's tax rises. Falcons School decided to absorb the 20pc VAT levy in January and kept fees frozen at £6,270 per term in a bid to arrest a decline in pupil numbers. In March the school told the families of its 126 pupils that it was 'considering the future viability' of the school and that it was 'likely to close'. The school was taken over by Inspired Education Group in 2023 and made the decision to admit boys for the first time in an attempt to increase pupil numbers. A spokesman for the school said: 'As a result of the thorough consultation process, we have taken the difficult decision to close the school at the end of the academic year. 'The consultation took place as the school has been loss-making since we acquired it, with enrolment under 50pc over the last two years. THis has been intensified by the recent government changes such as VAT.' Ministers have admitted the Government expects 100 private schools to close as a result of its VAT raid. Analysis by the Independent Schools Council suggests this will lead to 40,000 pupils being displaced and 11,000 jobs being lost.
