New High in Google Stock After Alphabet Court Ruling, Appeal Could Drag Into 2027
The legal battle is still ongoing, but Alphabet's momentum has surged in after hours due to strong results, new blockchain advances, and...
Quick overview
- Alphabet's stock surged after a favorable ruling in its antitrust case, allowing Google to continue operating its Chrome browser with some new limitations.
- The court's decision requires Google to share search data with rivals and prohibits exclusive search contracts, aiming to enhance competition.
- Despite the positive ruling, Google plans to appeal, indicating that the legal battle will continue and may extend into 2027 or beyond.
- Alphabet reported strong Q2 earnings, exceeding expectations with $81.2 billion in revenue and significant growth in Google Cloud and YouTube advertising.
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The legal battle is still ongoing, but Alphabet’s momentum has surged in after hours due to strong results, new blockchain advances, and antitrust ruing.
Judge Allows Chrome to Stay but Limits Search Exclusivity
Alphabet (NASDAQ: GOOGL), the parent company of Google, saw its stock rise late Tuesday following a key ruling in the U.S. government’s long-running antitrust case targeting its internet search business. The market had braced for a harsher outcome, but the decision proved less restrictive than expected, fueling a relief rally. Apple (NASDAQ: AAPL) shares also edged higher in sympathy.
U.S. District Judge Amit Mehta of the District of Columbia ruled that Google may continue to operate its widely used Chrome browser, a major win for the company as regulators weighed potential remedies. However, the court imposed new limitations aimed at fostering competition. Google will be required to share certain search data with rivals and will be barred from signing exclusive search contracts that lock in its dominance.
Google Chart Daily – We’ll See A Large Gap Higher Tomorrow
At the same time, the ruling leaves Google with some strategic flexibility. Judge Mehta stopped short of banning the company from paying third parties to feature its browser as the default option, a practice that has been central to its business model.
The outcome highlights the delicate balance regulators are attempting to strike: curbing Google’s market power without upending the digital ecosystem or consumer experience. For investors, the ruling appeared to remove some of the most severe downside risks, sparking optimism about Google’s continued profitability in its core search business.
Google Prepares for Appeal
Despite the latest ruling, the legal battle is far from over. Google has already confirmed that it plans to appeal the decision, setting the stage for another lengthy round of courtroom proceedings. Under the current timetable, the company will have 30 days from the final judgment to formally file its appeal.
Timeline and Market Impact
If the case moves forward, the appeals process could easily stretch well into 2027 or beyond, keeping a cloud of regulatory uncertainty over the stock. Prolonged legal challenges often weigh on investor sentiment, especially when they involve antitrust measures that could alter core revenue streams.
Stock Performance
Even with the looming risks, Alphabet’s shares surged from $212 to a new record high of $229.74 following the recent ruling. The relief rally suggests that investors viewed the outcome as far less damaging than initially feared. Still, analysts warn that extended litigation may introduce bouts of volatility in the years ahead.
Alphabet Q2 Earnings: Outperforming Expectations
Alphabet delivered another strong quarter, with all key metrics surpassing Wall Street’s forecasts. Revenue excluding traffic acquisition costs came in at $81.2 billion, while adjusted EPS reached $2.31.
Google Cloud maintained robust momentum, reporting $13.6 billion in sales, highlighting demand for AI-driven infrastructure. YouTube advertising revenue rose 13% year-on-year to $9.8 billion, reaffirming Alphabet’s strength in digital advertising.
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