Alphabet has been the worst-performing FAANG stock since Google’s EU fine

Google is not out of the woods yet. A new report from analyst firm MoffettNathanson is warning investors that Google’s parent company, Alphabet, is likely to face “regulatory disruption, or at least regulatory scrutiny” for the foreseeable future, and such hurdles could limit the company’s growth.

Already, the firm estimates that Alphabet’s shares have been the worst performing of the so-called FAANG companies (Facebook, Amazon, Apple, Netflix, and Alphabet) since late June. That’s when European regulators whopped Google a record $2.7 billion antitrust fine related to its comparison shopping features. “It might be a coincidence,” analyst Michael Nathanson writes of the lower performance. But he said another EU investigation–this one concerning Android–could be even worse for Alphabet, and he notes that Google is facing no fewer than five EU antitrust probes at varying stages of development.

Despite all that, Nathanson says Alphabet remains “incredibly well positioned and inexpensive,” and the firm rates Alphabet a “Buy.” But a word of caution never hurts.