Alphabet (NASDAQ:GOOGL) stock is up 7% in after-hours trading, after a federal judge handed down a long-awaited ruling in the Department of Justice’s landmark antitrust case against Google. Instead of a breakup that could have ripped away some of its most prized assets, Google walked away with a ruling that investors are calling a clear win.
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After five years of courtroom drama, Judge Amit Mehta rejected the government’s most aggressive remedies. The DOJ had pushed for Google to sell off Chrome – its dominant web browser – and Android, the mobile operating system that underpins billions of devices worldwide. Both demands were denied.
Chrome and Android are more than just products – they’re Google’s front doors, the gateways through which users access Search, Gmail, YouTube, Gemini, ad-tech, and more. Losing either one would have reshaped the company overnight.
Instead, the judge offered a middle ground. Chrome and Android will remain under Google’s control, but with new restrictions designed to foster competition. Google can no longer sign exclusive contracts to be the default search provider on devices such as Apple’s Safari browser, though it may still pay for placement as long as deals aren’t exclusive. In addition, Google must share portions of its search index and user-interaction data with qualified rivals, though its advertising data remains protected.
For investors, this compromise meant the “nuclear option” of a forced breakup was off the table, while Google still retains the freedom to pay for distribution and keep its crown jewels intact.
That backdrop explains why Truist’s Youssef Squali quickly labeled the decision a “major win” for Google. The analyst highlighted that Chrome remains the company’s most powerful asset, with roughly 54% market share in the U.S. and about 64% globally. And while exclusivity bans might sound restrictive, Squali argued they don’t meaningfully undermine Google’s dominance. With its superior product and deep pockets, Google is unlikely to lose Apple or other key partners anytime soon.
Even the requirement to share portions of its search index and interaction data is seen as manageable. Squali noted that competitors have already been scraping Google data via third parties to train their AI models, limiting the real-world impact.
Taken together, Squali argues the ruling leaves Google in a stronger position than many feared, and on that basis, he’s doubling down on his Buy rating for GOOGL stock. (To watch Squali’s track record, click here)
The broader Street view, however, shows an odd mismatch. While 27 Buys and 9 Holds add up to a Strong Buy consensus, the average price target of $217.81 points to a 4% downside from after-hours levels. It raises the question of whether analysts will revisit their targets now that the legal cloud has lifted. (See GOOGL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.