Top Wedbush analyst Daniel Ives called the U.S. federal judge’s ruling that Alphabet’s Google (GOOGL) is not required to sell its Chrome web browser to restore competition in online search and can continue to pay companies like Apple (AAPL) to keep its search engine as the default option a “massive win” for the tech giants. Ives noted that the existing $20 billion search deal between the two tech giants will continue and “not be barred in its current form.”
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U.S. federal judge Amit Mehta ruled that Google is not required to sell its popular Chrome browser as a remedy in the Department of Justice’s (DOJ) landmark antitrust case. It is notable that while the ruling doesn’t require the divestiture of Google Chrome, it prohibits the search engine giant from entering into exclusive contracts for its Google Search, Chrome, Google Assistant, and Gemini products.
GOOGL stock jumped 7% in Tuesday’s extended trading session, while AAPL stock rose about 3%.
Wedbush’s Daniel Ives Cheers Court’s Ruling on Google’s Chrome Browser
Ives noted that while in theory Google is not allowed to enter into exclusive deals for its search engine, the ruling now clears the path for Apple to continue its deal. In fact, the analyst sees the possibility of Apple deepening its AI ties with Google’s Gemini.
“We now see a green light for a bigger Gemini AI partnership between Apple and Google with this DOJ case now in the rear-view mirror,” stated Ives, who has a Buy rating on AAPL stock with a price target of $270.
The 5-star analyst added that the matter was a “black cloud worry” for Apple stock, as investors were concerned that a Google Chrome breakup and/or a decision to end the search deal was possibly up for consideration.
Overall, Ives views the court’s ruling as a “monster win” for the iPhone maker and a “home run ruling” for Google, removing a major overhang on the stocks of these tech giants.
Wall Street’s Ratings on GOOGL and AAPL Stocks
Currently, Wall Street has a Strong Buy consensus rating on Alphabet stock, with the average GOOGL stock price target of $217.81 indicating a 3% upside potential.
Meanwhile, Apple stock scores a Moderate Buy consensus rating, with the average AAPL stock price target of $238.93 suggesting a 4% upside potential.
These price targets/ratings could change as more analysts react to the court’s ruling.
