CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Google share price rally could stall after Fitbit deal faces EU probe

Alphabet (Google) shares have skyrocketed since the initial Covid-19 stock market crash, but its stock stuttered on Thursday and could continue to do so after its Fitbit deal draws scrutiny from EU antitrust probe.

Alphabet (Google) shares have skyrocketed since the initial Covid-19 market crash, but its stock stuttered on Thursday and could continue to do so after its Fitbit deal draws scrutiny from EU antitrust authorities.

Since hitting a year-low of $1054.13 on 23 March due to the coronavirus outbreak, Google has seen its share price rebound aggressively, climbing 43% since the downturn and up more than 10% year-to-date.

However, that rally risks stalling as a consequence of the EU antitrust investigation into its deal with the wearable tech company.

Google is trading at $1523 per share at the time of publication.

EU antitrust probe could scupper Google’s $2.1 billion Fitbit deal

Google’s $2.1 billion bid for the fitness tracker maker is going to face a full-scale EU antitrust probe next week, according to a recent report by MLex.

In an attempt to quell EU antitrust concerns, Google said that it would not use Fitbit’s health data to help it improve its AdSense software which is used to target consumers online with relevant advertising. However, the promise appears insufficient for EU regulators.

The deal, which was announced back in November last year, will allow Google to compete with tech giants like Apple and Samsung within the wearable tech market, which is worth around $52 billion (£39.8 billion) in 2020.

‘The wearables space is crowded, and we believe the combination of Google and Fitbit’s hardware efforts will increase competition in the sector, benefiting consumers and making the next generation of devices better and more affordable,’ a Google spokeswoman said.

The EU Commission will launch its full-scale investigation into the deal after it has completed its preliminary review on 4 August.

Google plans to keep staff working from home until next summer

The vast majority of Google’s 200,000 staff around the globe have been told to continue working remotely until July 2021, with coronavirus cases resurfacing in North America and Europe.

‘To give employees the ability to plan ahead, we are extending our global voluntary work from home option through June 30, 2021, for roles that don't need to be in the office,’ Google CEO Sundar Pichai wrote in an email to employees.

‘I hope this will offer the flexibility you need to balance work with taking care of yourselves and your loved ones over the next 12 months,’ he added.

Twitter and Square CEO Jack Dorsey reiterated similar sentiments to his employees earlier this month, telling workers that they are free to continue working remotely if they wish.

'We've been very thoughtful in how we've approached this from the time we were one of the first companies to move to a work-from-home model,' a Twitter spokesperson said at the time.

'We'll continue to be, and we'll continue to put the safety of our people and communities first.'

How to trade stocks with IG

Looking to trade the Alphabet and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs in a few easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘Alphabet’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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