MOUNTAIN VIEW, CA—John Kent Walker, President of Global Affairs and Chief Legal Officer at Alphabet Inc. (NASDAQ:GOOGL), recently sold a significant portion of his holdings in the company's Class C Capital Stock. The sale comes as Alphabet maintains a strong financial position, with InvestingPro data showing the company holds more cash than debt on its balance sheet and demonstrates sufficient cash flows to cover interest payments. According to a filing with the Securities and Exchange Commission, Walker sold a total of 16,820 shares across several transactions on December 30, 2024, generating approximately $3.24 million. The shares were sold at prices ranging from $191.32 to $193.70 per share, with the stock trading near its 52-week high.
Following these transactions, Walker holds 23,500 shares directly and 60,801 shares indirectly through Arete Trust, where he serves as a trustee alongside Diana Ruth Walsh.
The sales were conducted under a pre-established Rule 10b5-1 Trading Plan, which Walker adopted on May 29, 2024. This type of plan allows company insiders to set up a predetermined schedule for selling stocks to avoid potential conflicts of interest.
In other recent news, Alphabet Inc. has been subject to multiple noteworthy developments. JMP Securities has downgraded Alphabet's stock rating from Market Outperform to Market Perform due to potential anti-trust penalties that may affect Google's distribution of search and search revenue in the United States. These concerns stem from an impending court ruling expected by 2025.
Simultaneously, Apple (NASDAQ:AAPL) has shown interest in participating in Google's upcoming U.S. antitrust trial, aiming to protect revenue-sharing contracts with Google that reportedly brought in an estimated $20 billion in 2022.
RBC Capital, however, has raised Alphabet's share target, citing the company's leadership in AI and growth potential. Alphabet's free cash flow from its core search advertising business, which reached $55.8 billion in the last twelve months, is expected to fund growth in multiple sectors.
Google, a subsidiary of Alphabet, is planning to introduce an AI Mode to its search engine, potentially increasing the user base of its Gemini AI chatbot. However, the company faces potential restrictions from the Department of Justice due to its status as an illegal monopoly.
In addition, Alphabet is facing new regulations from the U.S. that would designate it as a global gatekeeper for the distribution of AI chips, which could impact its overseas cloud services. Lastly, Alphabet has been hit with a $75 million antitrust fine by Turkey's antitrust authority for allegedly engaging in anti-competitive practices. These are the recent developments.
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