Alphabet, Google Owner Is Undervalued. Even After The Antitrust Lawsuit Court Verdict

Alphabet Inc, the Google owner company lost an antitrust lawsuit alleging it wields too high market power over search.

The implications of the lost antitrust lawsuit by Alphabet, Google owner would take years to unfold.

That said, Alphabet Inc, via Google would continue to hold a large grip over search queries globally. Simply said, Google possesses the largest amount of information on search queries which power its artificial intelligence search algorithms.

It is interesting to note that the leading proponent from the private sector that Google has almost monopoly power over search is Microsoft. Microsoft's CEO Satya Nadella was even one of the main witnesses of the prosecution. Satya Nadella testified in the lawsuit against Alphabet that there is a danger that Alphabet, via Google could hold monopoly power over artificial intelligence, AI technology in the future, because the information Google possesses off which Google's artificial intelligence, AI algorithms feed to improve themselves and the predictive analytics that could provide Alphabet with  strategic advantage.

 

Although the above claim by Microsoft's CEO Satya Nadella sounds legitimate, nothing stops Microsoft form also using search query results to load on users' information to train its own artificial intelligence, AI algorithms. Some analysts claim that for year Microsoft has under-invested in its Bing search engine and in the underlying algorithms, which made Bing inferior to Google.

Part of the reason of the possible under-investment by Microsoft in Bing was the fact that Microsoft wanted to develop its hardware business, namely the production of mobile phones, tablet computers and laptops under the own Microsoft brand. Microsoft wanted apparently to measure up to the huge success of Apple, which has extremely successfully combined, vertically integrated mobile phones, tablets and Macintosh computers hardware production with its own software operation systems for its hardware. In addition, Apple boasts it does not collect information on its users and Apple does not serve user informed internet advertisements like Alphabet via Google of Meta Platforms vi Facebook, Whats App, Messenger, Instagram. Microsoft tried to circumvent serving users advertisements by buying into a 49 % share of OpenAI, producer of ChatGPT Large Language AI Model and ultimately SearchGPT. But legally this move of Microsoft looks borderline, if Microsoft wants to argue it does not serve advertisements by harvesting users' information and thus drive on its tablet and laptop PC hardware business.

Actually, Alphabet's Google has already extracted loads of information to ensure near term dominance in search. That said, however, Alphabet has to remain vigilant, on its toes and develop its artificial intelligence, AI algorithms at lightning speed if it wants to remain long-term viable. And this goes beyond the standard econometrics, statistics models of linear regression, maximum likelihood and logistic regression. 

Actually, the court verdict has to do with the way Alphabet packages in its Google search engine with its operating system Android, packages in the Android modifications of Samsung, Sony and Motorola, packages in the Google search engine with the Mozilla Browser and in Apple's Safari internet browser. Much like Microsoft used to package its internet browser Internet Explorer first, than Edge in the Microsoft Windows operating system. And Microsoft was nearly broken up due to such allegedly too high wielding market power practices.

The lawsuit against Alphabet remedy actions are yet to be decided upon and published, but Alphabet seems to have hardly pressed exclusivity on Mozilla Firefox or Apple's Safari internet browser or the Android modifications of Samsung, Sony and Motorola. At least judging by public information.

 

In Wolfteam Ltd.'s view Alphabet, via Google gathered too much initial speed, because the search engine Google was viewed as that much better as the then leader Yahoo's search engine. The initial 7 years since 2003 provided Google with huge second mover advantage and first by technology advantage leap. Google was able to introduce artificial intelligence, AI models like linear regression, maximum likelihood and logistic regression, neural networks into its search making its models fully artificial intelligence, AI. The AI automation of Google's search engine models let Alphabet via Google gather even more speed and move much further ahead of its competitors. Microsoft launched Bing relatively late, still being wary of tainting a possible future successful hardware business by user information mishandling. And Microsoft did not focus solely on Bing, while Alphabet's initial and later focus was entirely on Google and later came AI. Alphabet later tried to diversify with its other bets. Alphabet also owns YouTube which is serving videos via artificial intelligence, AI and holds huge amount of unlocked value. Since videos, not only short form video reels is the current and for the next decade mega trend. The largest trend for the next 20-30 years is of course artificial intelligence, AI.

And Alphabet via the Google's artificial intelligence, AI trained algorithms holds a superior hand currently. According to many Wall Street research analysts, investors, technologists, technology analysts, the general technology and broader public, at least.

Alphabet's intrinsic value is 7 trillion USD, according to Wolfteam Ltd.'s projections and estimates.