Google's core display, video likely 'unaffected' by European ad tech concerns: Citi
Alexander Koerner
Google (NASDAQ:GOOG) (NASDAQ:GOOGL) may be in hot water after the European Commission issued a statement of objections on Wednesday over its advertising technology business, but investment firm Citi said the company's "core" display and video businesses should not be impacted.
"[W]e believe Googleâs core [Display & Video 360] is likely to be unaffected, and we are most focused on Googleâs GenAI initiatives and its core Search & YouTube," analyst Ronald Josey wrote in an investor note.
Josey, who has a buy rating and $130 per-share price target on Google (GOOG) (GOOGL), added that the suit from the European Commission could result in a divestiture of DoubleClick for Publishers and its ad exchange, which is similar to the antitrust case going on in the U.S. 
If Google (GOOG) (GOOGL) were forced to divest Google Ad Manager, Josey believes it would be a relatively small impact to the company as a whole. 
"Although scrutiny of Google Ad Manager has escalated, we note a possible divestiture would impact a relatively smaller portion of Googleâs Network Websites revenue, which in 2022 reached $32.8 billion ... and accounted for ~12% of gross revenue," Josey wrote in an investor note. 
"Said another way, we believe the divestiture of [Google Ad Manager] is likely to have a limited impact on Googleâs revenue and an even smaller impact on profitability," Josey added.
Google (GOOG) (GOOGL) shares fell around 1% in pre-market trading on Thursday.
More on Google

Google Stock: AI Revolution Seems Fully Priced In
Google reportedly offers ad-tech split-up in defense against new DOJ suit
Google: Search And AI, Not Search Or AI (Rating Upgrade)