2 Magnificent AI Stocks Down 27% and 32% That Investors Will Wish They Bought on the Dip

2 months ago 13

Justin Pope, The Motley Fool

Sun, Apr 27, 2025, 12:41 PM 6 min read

Heavy is the caput that wears the crown. Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), the genitor of Google, and Meta Platforms (NASDAQ: META), formerly known arsenic Facebook, are facing antitrust litigation regarding the ways they person maintained their dominance successful net hunt and societal media.

Investors mostly dislike uncertainty, and amid a macroeconomic situation that has go acold little predictable implicit the past fewer months, the full marketplace has go progressively volatile. Between that and the company-specific risks they face, Alphabet had fallen by 27% from its precocious and Meta Platforms had mislaid 32%, arsenic of April 22.

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The imaginable outcomes of the cases against those companies could see regulators forcing them to merchantability oregon rotation disconnected cardinal concern assets. That said, shying distant from these apical artificial quality (AI) companies present could beryllium to beryllium a mistake for investors.

Here's wherefore investors whitethorn privation to bargain this dip connected Alphabet and Meta Platforms.

Alphabet and Meta Platforms are among the world's astir almighty exertion leaders. Each generates billions of dollars successful yearly advertisement gross from its halfway businesses. Alphabet dominates the net with its Google hunt motor and bundle ecosystem, portion Meta's societal media apps, including Facebook, Instagram, WhatsApp, and Threads, collectively scope 3.35 cardinal regular progressive users.

However, antitrust regulators person stepped successful owed to those companies' strangleholds connected their respective niches wrong the tech sector.

Alphabet has already mislaid 2 antitrust cases, 1 involving Google Search and different relating to its anticompetitive practices successful online advertising. Now, Alphabet and regulators volition reason successful court, and judges volition find what actions Alphabet whitethorn request to instrumentality to remedy its violations. Alphabet whitethorn beryllium ordered to merchantability its Chrome web browser, oregon to cease paying Apple the billions of dollars a twelvemonth it spends successful the woody that has made Google the default hunt motor connected iPhones' Safari web browser.

Meanwhile, the Federal Trade Commission's antitrust lawsuit against Meta Platforms implicit its assertive tactics to either get rivals similar Instagram and WhatsApp oregon destruct them is conscionable starting. If the institution loses, immoderate speculate that it whitethorn beryllium ordered to rotation disconnected oregon merchantability those apps.

The thought of a breakup is scary, but investors could beryllium overreacting to the headlines. Both companies person layered aggregate products and services to physique exertion ecosystems with almighty web effects.