Censorship, artificial intelligence, and competition will undoubtedly dominate the 2024 U.S. presidential election, especially in the technology sector. Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) could be significantly affected by the election results, even if the two major political parties’ candidates have different priorities.
He aims to “end censorship” and limit huge social media platforms’ power to “restrict free speech,” according to his website.
“By restoring free speech, we will begin to reclaim our democracy,” Trump’s website says.
Trump also wants Congress to create a digital bill of rights that would require law enforcement to get a court order to remove online information. Users would be alerted of content restrictions or removal. Many social media platforms, including Google-owned YouTube, banned Trump. His YouTube channel was restored.
If reelected, Trump has promised to limit Section 230 of the Communications Decency Act by requiring firms to achieve “high standards of neutrality, transparency, fairness and nondiscrimination” to receive immunity.
Section 230 allows platforms to regulate and remove obscene or illegal posts.
Companies are also protected when content is “provided by another information content provider.”
Biden considers AI, competition
President Biden’s focus on tech will certainly increase regulatory ire to boost competitiveness.
The Department of Justice is investigating Alphabet for alleged illicit search partnerships with smart device makers like Apple.
Alphabet, Amazon (AMZN), and Microsoft (MSFT) are also under investigation by the FTC for their AI startup deals.
The rise of artificial intelligence and its impact on society worry Biden.
Google shares rose 83% under Trump and 60% under Biden.
Revenue impact
In a recent video, Morgan Stanley analyst Brian Nowak predicted a $3B to $5B increase in digital ad spend as election season approaches, with the biggest gains in the third and fourth quarters.
Nowak said connected TVs and search could gain most, with 30% to 40% of digital ad expenditure going to search and growing the pie by $1B to $2B. Statcounter estimates Google controls 91% of search.
Behind the numbers
The software giant beat Wall Street projections with $1.64 per share on $86.3B in revenue in the fourth quarter ending Dec. 31.
Seeking Alpha rates the stock STRONG BUY with a D for value and B for growth. Profitability, momentum, and revision are A+, B+, and B-.
Seeking Alpha analysts rate 23 of 32 Alphabet authors had a BUY or STRONG BUY rating in the past 30 days.
Over the past year, Google shares rose 53%.
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