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Jim Cramer on how the U.S. government is getting tougher on takeovers and mergers – UnlistedNews

Increased antitrust scrutiny against big tech companies forces us to take a hard look at the Justice Department’s lawsuit against Alphabet (GOOGL) and the potential implications for this Club participation and other mega caps.

Jim Cramer spoke Monday with Jonathan Kanter, assistant attorney general for the Justice Department’s Antitrust Division, in an exclusive “Mad Money” interview. While Kanter said he couldn’t comment on the government’s case against Alphabet because it was ongoing, he did offer some insight into how it’s enforcing antitrust law in today’s marketplace.

Kanter emphasized, more broadly, that he is investigating cases to “determine whether the conduct that one company is engaging in is preventing others from competing effectively without providing benefits to market participants.” Kanter left no doubt that if she believes a company is exhibiting classic monopolistic practices as defined by the Sherman Antitrust Act, she will go after it until management changes its ways.

As Kanter said, “Does it lessen competition or tend to create a monopoly?” If, he continued, any of the risks are present, the department will initiate a case against the company. His case explores a variety of ways that Alphabet has thwarted the online advertising market to the detriment of both advertisers and publishers.

While Kanter made it clear there could be no direct comment on the case, Jim Cramer believes it was something that hurt the Charitable Trust’s valuation of this name. Jim and Jeff Marks intend to discuss what Kanter’s general comments mean for Alphabet and others in what he calls the Magnificent Seven in their morning meeting tomorrow at 10:20 ET.

(Jim Cramer’s Charitable Trust is GOOGL long. See here for a full list of actions).

As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

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Sara Marcus
Sara Marcushttps://unlistednews.com
Meet Sara Marcus, our newest addition to the Unlisted News team! Sara is a talented author and cultural critic, whose work has appeared in a variety of publications. Sara's writing style is characterized by its incisiveness and thought-provoking nature, and her insightful commentary on music, politics, and social justice is sure to captivate our readers. We are thrilled to have her join our team and look forward to sharing her work with our readers.
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