Should you buy Alphabet (GOOGL) stock after antitrust ruling? Analysts weigh in
Alphabet (GOOGL) stock rallied in early trading on Wednesday after a US judge rejected proposals that the company divest its Chrome browser as part of an antitrust case.
US District Judge Amit Mehta ruled in favour of Alphabet on Tuesday, deciding against the most severe remedies sought by the Department of Justice.
The Justice Department had proposed Alphabet sell key assets, including Chrome, following last year’s finding that Google held an illegal monopoly in internet search.
Mehta, however, barred the company only from exclusive contracts that require condition payments or licensing.
“Google will not be required to divest Chrome; nor will the court include a contingent divestiture of the Android operating system in the final judgment,” the decision stated.
The court added that plaintiffs “overreached in seeking forced divestiture of these key assets, which Google did not use to effect any illegal restraints.”
Alphabet shares were last up about 6% in early trading on Wednesday. The stock has risen more than 11% so far in 2025.
Wall Street analysts raise price targets on Alphabet’s stock
The ruling helped reinforce Wall Street’s optimism on Alphabet’s stock.
Several major firms maintained positive ratings and raised their price targets, citing reduced regulatory risk.
Barclays lifted its target to $250 from $235, implying about 18% upside from current levels.
The bank noted that with a Chrome divestiture off the table, it sees little financial impact from restrictions on data sharing and syndication.
Bank of America raised its target to $252 from $217, arguing that the judgment preserves Google’s ability to maintain its search distribution position through traffic acquisition cost (TAC) payments.
Analysts said partners are likely to remain aligned with Google given the company’s superior search monetisation.
JPMorgan raised its price target to $260 from $232, calling the remedies “much more favourable for Google than anticipated.”
The bank noted that the judge accounted for competition in search spurred by generative AI developments
Deutsche Bank also raised its target to $260 from $215, saying the outcome provides visibility for Alphabet’s long-term fundamentals while reducing regulatory risk.
The firm now applies a higher earnings multiple, citing AI tailwinds, cloud acceleration, and margin improvement.
Morgan Stanley described the remedies as “likely benign,” highlighting that product innovation and operating trends will drive performance toward its $260 bull case.
Wolfe Research said the outcome could pose a mid-single-digit percentage headwind to earnings per share if Google loses market share over time, but added that in the near term, it does not expect a material impact.
Goldman Sachs cautioned that the full impact of the remedies may take years to assess, but said the decision removes a valuation overhang tied to regulatory uncertainty.
The firm highlighted Alphabet’s position as a leader in AI-driven businesses.
Citi described the ruling as expected and reiterated its Buy rating, while noting that Alphabet may still appeal, potentially extending proceedings for several years.
Evercore ISI labelled the outcome a “best case scenario” and reiterated Alphabet as its top pick.
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