Today's Stock News: Google's DOJ Ruling, SMCI Earnings, And More

2024-08-09 01:51:40

(MENAFN- Baystreet) Alphabet (GOOG)'s historic loss to the Department of Justice is a major blow for the mega-capitalized firm. On August 5, 2024, the district court found that Google violated Section 2 of the Sherman Act. It maintained its monopoly in two product markets (general search services and general text advertising) exclusively.

The ruling may halt Apple's (AAPL) involvement in $26 billion of revenue share payments. It provided Apple with a 100% profit margin. The decision explains why Berkshire Hathaway (BRK-B) unloaded nearly half of its AAPL stock.

Expect the search engine space to evolve. Apple may negotiate a search deal with Microsoft (MSFT). In addition to powering Apple Intelligence with ChatGPT, Apple may set Bing as Safari browser's default search engine.

AI stocks are on watch today after Super Micro (SMCI) posted Q4 results last night. The firm earned $6.25 a share, up by 100% Y/Y to $5.31 billion. However, analysts expected SMCI to earn $8.14 a share. The firm will split its stock 10-for-1 effective October 1. When Nvidia (NVDA) and Broadcom (AVGO) announced a stock split, shares soared.

SMCI fell by 13% in after-hours trade.

Shareholders must weigh on SMCI's Q1 net sales forecast of $6 billion to $7 billion. This is above consensus estimates.

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