Alphabet NASDAQ: GOOGL just caught a significant break in its long-running battle with regulators. U.S. District Judge Amit Mehta issued his highly anticipated ruling on remedies in the landmark antitrust case against Google.
Major U.S. equities indexes finished Wednesday mixed after a report from the Bureau of Labor Statistics showed that job openings in July declined from the previous month, suggesting that tariffs and elevated interest rates have been weighing on the labor market.
Google dodged a pair of antitrust bullets on either side of the Atlantic this week but could still come under increased competitive fire, analysts said. The penalty imposed on the company by U.S.
A judge declines to break up the company, as artificial intelligence transforms search.
Wall Street analysts moved quickly to raise price targets on Google's parent company Alphabet Inc (NASDAQ:GOOG) after a US District Court issued a broadly favorable ruling on antitrust remedies, with both Wedbush and Oppenheimer framing the decision as a decisive win for the company. Wedbush said the Department of Justice's case “folded like a cheap suit,” lifting its price target to $245 from $205 while reiterating an ‘Outperform' rating.
Wall Street is steadying on Wednesday as Alphabet and other technology stocks rise.
Alphabet Inc.
Judge Mehta's ruling in the Alphabet Inc. case removes the antitrust overhang for GOOGL stock, with minimal operational or financial impact expected in the short term. Alphabet remains undervalued, and I maintain a Strong Buy rating as the company leads innovation in AI search and continues to grow ad revenues. Profitability and margins remain robust despite AI-related cost concerns, supported by strong cloud, YouTube, and subscription growth.
The Alphabet Inc. antitrust remedy ruling removes the risk of forced Chrome divestment, lifting a major overhang and justifying GOOGL's rally and potential re-rating. Despite some required concessions, the ruling allows Google to largely operate as usual, preserving its core business and future growth prospects. Valuation remains attractive at 23x earnings, with strong momentum in search, cloud, and Other Bets, supporting my continued buy rating.
Google has escaped a breakup of its Chrome browser in a major US competition case, but the judge imposed remedies whose impact remains uncertain just as AI starts to compete with search engines.
I reaffirm my Strong Buy rating on Alphabet Inc., as the antitrust ruling removes the breakup risk and preserves Chrome and the Apple deal. Regulatory clarity paves the way for multiple expansion, with Wall Street raising target prices and buybacks amplifying rerating potential. Alphabet remains undervalued versus peers despite double-digit growth, strong margins, and leadership in AI, Cloud, and digital distribution.
Google avoided a breakup in the antitrust remedies handed down Tuesday. Several employees celebrated internally with messages and memes.