Alphabet’s (GOOGL) Google will not run any political advertising on its platform ahead of elections in the Philippines, early next year. Google announced that election advertisements that endorse or oppose a political party or candidate will not be allowed on the platform from February 8, 2022, through May 9, 2022, which is election day. GOOGL shares fell 0.60% to close at $2,821.03 on December 1.
Alphabet is a holdings company with Google, an Internet and media giant, a wholly owned subsidiary. As a search giant, it makes money through online advertising and the sale of apps and content on Google Play and YouTube.
Google Political Ads Ban
This is not the first time that Google has banned political advertising on its platform. In the run-up to Canada’s federal election in 2019 and Singapore’s elections in 2020, it imposed similar bans. The bans come amid mounting concerns that social media and Internet companies influence elections a great deal.
In Asia, social media platforms have emerged as political battlegrounds. With Filipinos ranking top on the amount of time spent on social networks, Google does not want to influence the final decision ahead of the election. (See Top Smart Score Stocks on TipRanks)
The Philippines heads into the polls next year to choose who will succeed President Rodrigo Duterte. There have been claims that social media platforms like Facebook (FB) have helped strengthen the president’s support base in the recent past.
Stock Rating
In November, Morgan Stanley analyst Brian Nowak reiterated a Buy rating on Google with a $3,200 price target, implying 13.43% upside potential to current levels.
Consensus among analysts is a Strong Buy, based on 25 Buys and 2 Holds. The average Alphabet price target of $3,328.08 implies 17.97% upside potential to current levels
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