Alphabet Faces 25% Stock Plunge Risk Over Potential Chrome Spin-Off

Alphabet Inc. confronts a seismic regulatory threat as U.S. courts weigh forcing a Chrome browser divestiture—a MOVE analysts warn could erase $450 billion in market value. The potential spin-off strikes at the heart of Google’s search-advertising dominance, with Chrome serving as critical infrastructure for 65% of global web traffic.

Judge Amit Mehta’s pending August ruling follows last year’s landmark antitrust verdict against Google. Structural remedies now under consideration could dismantle key synergies between Chrome, search, and Android—the triple engine driving 80% of Alphabet’s $307 billion annual revenue.

Regulators allege Chrome’s default search settings constitute anti-competitive lock-in. The browser’s 3.2 billion-user footprint gives Google unparalleled data advantages in AI development, making this case pivotal for tech’s next era. Market reactions suggest investors are pricing in a 15-25% downside risk.