Alphabet (NASDAQ:GOOGL) stock surged to a new intraday record on Wednesday after a U.S. federal judge ruled that Google will not be forced to sell its Chrome browser. The decision came as part of remedies in the Department of Justice’s high-profile antitrust case.
Shares climbed to $230.86 in early trade, before easing to $228.14 by 10:18 ET, still up 7.9% on the day.
Judge rules against Chrome and Android divestiture
Judge Amit Mehta’s ruling spared Google from one of the harshest penalties that could have reshaped its business. While the company was found to maintain an illegal monopoly in the search market, the decision prevents forced divestitures of Chrome and Android.
The judge also ruled that Google may continue making payments to Apple and other partners for preloading its products. However, Google must share certain data with competitors for six years to address search monopoly concerns.
Google and investor reaction
Google said it was reviewing the ruling carefully, warning that some requirements could affect user privacy. Still, executives welcomed the decision, noting that selling Chrome or Android would have harmed consumers and partners.
The lighter outcome boosted investor confidence, easing fears of stricter remedies. Analysts at BMO called the ruling a positive development but cautioned that Google still faces risks in its ongoing Ad Tech case, where harsher penalties such as divestitures remain possible.
Ripple effects for Apple and AI outlook
Apple (NASDAQ:AAPL) also gained from the ruling, with shares up 3.6%. The decision secures Google’s payments for default search placement on iOS, a deal worth billions annually. Wedbush described the ruling as a “big win” for Apple, adding it could open the door for closer AI cooperation with Google’s Gemini platform.
Analysts at KeyBanc said the decision was “better than feared” and clears the way for Alphabet stock to trade more in line with the S&P 500. They noted Google Cloud’s rapid growth and AI progress could now draw renewed investor focus.
Citizens analysts argued that Alphabet is becoming a clear “AI winner” and advised investors to buy, citing improved valuation potential after the legal uncertainty was reduced.
