It appears that stock market investors in general are still in an optimistic mindset on Tuesday morning, with several market indices pushing higher. However, the Nasdaq Composite (NASDAQINDEX: ^ IXIC) He was unable to join the party, and as of 12:15 p.m. ET, it was down a quarter percent.
the alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) It has been on the rise through most of 2021, having tackled the $2 trillion market cap mark recently. Although the parent company of Google is moving slightly lower on Tuesday, it is a partnership with the much smaller growth stock digital turbine (NASDAQ: APPS) He has investors looking at both stocks closely.
digital turbine deal
Shares of Digital Turbine jumped more than 10% at the open Tuesday morning before giving up most of their gains by midday. The mobile-focused digital advertising platform provider has announced a multi-year partnership with Google that will benefit both companies.
The general idea behind the partnership is for Digital Turbine to follow its products and growth strategy in support of Google’s Android mobile ecosystem. By giving the nearly one billion devices using Android the features of Digital Turbine’s smart app discovery capabilities, Google hopes that Android users will have better mobile experiences that will attract more customers to the ecosystem.
Digital Turbine sees a lot of potential through the partnership. CEO Bill Stone noted that the company has been working with Google on Android for the past 10 years, but he expects the new deal to expand its footprint in the ecosystem to better cover the space for mobile, TV, and connected devices.
Investors in digital turbines have had to deal with extreme volatility. However, they hope that the Google partnership will at least provide greater predictability in future results.
Privacy Concerns Hit the Alphabet
Meanwhile, Alphabet shares are down less than 1%. The move appears to be attributed to investors pulling back from Nasdaq’s recent gains, but the company also received some news that reminded shareholders of Alphabet’s privacy challenges.
Alphabet CEO Sundar Pichai should be available for questioning in a lawsuit from Chrome browser users, according to the latest ruling by a federal court judge. The lawsuit alleges that the company tracked internet usage even though users took advantage of Chrome’s private browsing mode, and the plaintiffs expressed the opinion that Pichai’s testimony was necessary to gain a full understanding of the privacy issues involved.
Alphabet has been trying to address the tracking issue for a long time now. Earlier in 2021, the company said it would begin phasing out tracking cookies, with the intent of no longer using any form of activity tracking. This has generated some opposition from advertisers who have relied on the ability to collect data and use metrics to target marketing to a specific audience more effectively.
With Alphabet stock up nearly 70% so far in 2021, it’s hard to take Tuesday’s slight drop in the stock price seriously. Many investors believe that Alphabet has a lot to manage if the economy continues to recover, and a massive overhaul in protecting personal information online is unlikely to come so quickly as to surprise the company.
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