Alphabet, Apple Stocks Climb In Wednesday Pre-Market: What's Going On?
Alphabet Inc. (NASDAQ: GOOG) shares rose 5.75% in pre-market trading following a favorable ruling in a significant antitrust case, where a judge rejected the Department of Justice's request to break up Google’s services. Apple Inc. (NASDAQ: AAPL) also saw a 2.88% increase as the ruling allows Google to continue paying Apple to keep its search engine as the default on iPhones. Analysts view the decision as a major win for both companies, although some lawmakers are calling for an appeal to break up Google.
Stock of Alphabet Inc. GOOG GOOGL climbed 5.75% in Wednesday pre-market after a federal judge ruled in favor of the tech giant in a landmark antitrust case on Tuesday.
Judge Rejects DoJ Bid to Break Up Google Services
On Tuesday, U.S. District Judge Amit Mehta delivered a sealed ruling rejecting the Department of Justice’s request to break up Google’s Chrome browser and Android operating system.
The decision also boosted Apple Inc. AAPL, with its stock gaining 2.88% in the pre-market as Judge Mehta allowed Google to continue paying Apple to keep its search engine as the default on iPhones.
Despite escaping divestiture, Alphabet Inc. has been directed to share some search data with its competitors, a decision it intends to appeal.
Wall Street Calls Ruling A ‘Huge Win’ As Warren Urges Appeal
Wall Street analysts hailed the decision as a “huge win” for Google and Apple, noting it lifts a major overhang for both companies.
The ruling has also sparked backlash, with Sen. Elizabeth Warren (D-Mass.) urging an appeal to “break up this Big Tech giant.” Warren and other senators voiced concern over talks between Google, YouTube executives, and Trump's legal team about a censorship lawsuit, calling the negotiations "dubious" and evidence of "corruption in plain sight."
At the same time, in May, DA Davidson analyst Gil Luria had suggested that Alphabet Inc. should consider splitting up Google's various businesses to boost its overall value. This recommendation was made in light of Google's struggle to retain its dominance in the search engine market due to the rise of AI chatbots. The analyst predicted that Alphabet’s value could skyrocket to $3.7 trillion with a “Big Bang Breakup” of Google’s various businesses.
