Alphabet Stock Eyes Fresh Record After 'Monster Win' In Antitrust Ruling That Allows Search Giant To Keep Chrome Browser

Google-parent Alphabet, Inc.'s (GOOGL) (GOOG) shares ended Tuesday's extended trading up nearly 7% after a federal court judge ruled that the search giant may not be required to spin off its Chrome browser and Android mobile operating system.

If the overnight hour's gains are sustained, the stock is on track to hit a fresh record on Wednesday and have its best day since April 8, when it rebounded from its post-Trump tariff losses, according to Koyfin

Legal Outcome

In a 230-page ruling, U.S. District Court for the District of Columbia Judge Amit Mehta said the court accepts with its modifications Google's remedies in full, and adopted the Department of Justice's (DOJ) proposed remedies in part.

While granting relief on the Chrome browser, Mehta ordered the Sundar Pichai-led company to share some search data about specific search index and user interaction, but not advertising data with third parties. 

The judge also mandated that the company set up a technological oversight committee to ensure compliance with the ordered measures for a period of six years. He also forbade Google from entering into exclusive contracts with companies to make it the default search engine. The company, however, can continue to pay other companies for placement and preloading Google apps. 

The origin of the case is an antitrust lawsuit filed by the DoJ against Google in 2020, alleging a search monopoly, and Judge Mehta ruled in the Justice Department's favor in August 2024. The remedies trial began in April.

DoJ, Google React

In a press statement, DoJ said the court's ruling“recognizes the need for remedies that will pry open the market for general search services, which have been frozen in place for over a decade.”

“The ruling also recognizes the need to prevent Google from using the same anticompetitive tactics for its GenAI products as it used to monopolize the search market, and the remedies will reach GenAI technologies and companies.”

Meanwhile, Google said in a blog post that the court has imposed limits on how it distributes Google Services and has asked it to share Search data with rivals.“We have concerns about how these requirements will impact our users and their privacy, and we're reviewing the decision closely,” it said.

Advantage Google, Apple

Following the ruling, Wedbush analyst Daniel Ives said,“Google and Apple just got a massive win from the court's ruling that the ongoing $20 billion search deal between the two stalwarts will remain and not be barred in its current form.”

He hailed it as a 'monster win' for Cupertino and for Google.”

“While in theory Google is barred from 'exclusive deals' for search, this now lays the groundwork for Apple to continue its deal and ultimately likely double down on more AI-related partnerships with Google Gemini down the road.”

Oppenheimer raised the price target for Alphabet stock to $270 from $235 following the ruling and maintained an 'Outperform' rating, The Fly reported. 

The DoJ monopoly remedy is the“best-case outcome” and removes the medium-term overhang on valuation/sentiment, the firm said.

Way Forward

The court said Google and the DOJ shall meet and confer before submitting a revised final judgment by Sept. 10, 2025.

Google Stock

Alphabet stock, which ended Tuesday's regular session 0.72% at $211.99, was last seen trading down 6.57% in the overnight hours.

On Stocktwits, retail sentiment toward Alphabet's stock turned to 'extremely bullish' (85/100) by late Tuesday from 'bullish' a day ago. The message volume also spiked to 'high' levels. The 24-hour message volume change leading up to late Tuesday was over 3,000%.

Google's Class A and Class C shares were among the top five trending equity tickers on Stocktwits by late Tuesday.

A bullish user said the court ruling was“legit best-case scenario for Google.”

Another retail watcher said they expected hedge funds and institutional buyers to add to their Alphabet stock holdings.

The stock was up about 12% year-to-date by the close of trading on Tuesday. 

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