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Nancy Pelosi sold 30,000 shares of Google (GOOGL)

Source: rvlsoft / Shutterstock.com

Alphabet (NASDAQ:GOOGLNASDAQ:GOOG) is down about 3% on Wednesday after some negative news on Tuesday. At today’s low, GOOGL stock was down more than 4% at one point in the session.

While disappointing earnings results from various tech companies didn’t help the mega-cap tech this morning, Alphabet had its own disappointing news. In a bid to crack Google’s online ads, the Department of Justice (DOJ) — along with eight states, including California — filed an antitrust lawsuit against the company.

The Department of Justice says the company’s online advertising tool “prevents competitors from entering the online advertising market and prevents publishers from monetizing their own content,” according to Yahoo! Finance.

Perhaps even more damning, the DOJ wrote:

“Through this monopolization lawsuit, the Justice Department and state attorneys general seek to restore competition in these important markets and seek equitable and monetary relief on behalf of the American public.”

When the Justice Department starts tossing around the “M-word” – monopoly – investors tend to get worried, and rightly so. “Today’s lawsuit seeks to hold Google to account for its long-standing monopolies in digital advertising technology,” said Assistant Attorney General Jonathan Kanter.

What does Nancy Pelosi have to do with GOOGL stocks?

U.S. Representative at Home Nancy Pelosi is well known for her stock market trading. There is even a social media account which follows its trades which has more than 280,000 subscribers.

Pelosi sold 30,000 shares of GOOGL from Dec. 20-28. Now, some would say it did so as part of normal portfolio rebalancing and the removal of underperforming assets before the end of the year. Keep in mind that GOOGL stock was near its 52-week low towards the end of the year. However, naysayers would say Pelosi had some sort of insight into DOJ stock and was reducing her risk by selling nearly $3 million worth of Alphabet stock.

In the end, it doesn’t really matter. I mean, from a moral standpoint, it certainly is if Pelosi was trading nonpublic information. But from a stock price perspective, Pelosi’s actions are of little relevance. After all, stocks are currently upper now than anytime during Pelosi’s December sales sale window.

While headlines about the DOJ and monopolistic accusations are negative on the face of it, some investors say GOOGL stock would be worth more if forced to split.

As of the date of publication, Bret Kenwell had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
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