What Google's Antitrust Ruling Means for Alphabet Stock
A federal judge ruled that Alphabet-owned Google holds a monopoly in search and text advertising, but Wall Street isn't worried. Here's what they have to say.


Alphabet (GOOGL) stock is struggling for direction Tuesday after a U.S. federal judge ruled Monday that Google has unlawfully maintained a monopoly in search and text advertising. Shares of Alphabet, which owns the search engine, were last seen marginally higher after sinking more than 4% in Monday's market meltdown.
"After having carefully considered and weighed the witness testimony and evidence, the court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly," wrote Judge Amit Mehta of the U.S. District Court for the District of Columbia in his ruling.
The suit was originally filed in 2020 and the ruling is the first anti-monopoly decision against a technology company in decades, according to CNBC. The ruling focused on Google's exclusive search arrangements with Android and Apple smart devices, which "helped to cement Google's anticompetitive behavior and dominance over the search markets," it added.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"This victory against Google is an historic win for the American people," said U.S. Attorney General Merrick Garland in a statement. "No company – no matter how large or influential – is above the law. The Justice Department will continue to vigorously enforce our antitrust laws."
Alphabet does not agree with the court's decision.
"This decision recognizes that Google offers the best search engine, but concludes that we shouldn't be allowed to make it easily available," said Alphabet President of Global Affairs Kent Walker in a statement, adding that the company will appeal the decision.
What should Alphabet investors make of the Google ruling?
Alphabet has kept up the pace on the price charts relative to its fellow Magnificent 7 stocks. For the year to date, GOOGL stock is up more than 14%. And Wall Street thinks the communication services stock has more room to run.
According to S&P Global Market Intelligence, the average analyst target price for GOOGL stock is $205, representing implied upside of nearly 30% to current levels. Additionally, the consensus recommendation is a Buy.
Financial services firm Needham is one of the more bullish outfits on GOOGL stock with a Buy rating and $210 price target.
"GOOGL is our top large-cap stock pick for 2024, owing to a stronger macro backdrop, record political ad spending, data advantages, and Generative AI integrations (which lowers operational expenditures and drive revenue upside)," says Needham analyst Laura Martin.
As for the antitrust ruling against Google, Martin says that "investors anticipated this outcome" and anticipates a "minimal near-term impact" on the stock. "We believe consumers give Google Search its monopoly, so even without its exclusive contracts, consumers will download the Google app and its Search market share won't change materially," she adds.
Related Content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
The $33,000 Retirement: One Man's Surprising Path to Financial Freedom at 61
Forget what society tells you, even with less than $1 million, you can be happy in retirement.
-
The Best Aerospace and Defense ETFs to Buy
The best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
The Best Aerospace and Defense ETFs to Buy
The best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Roth IRA Conversions in the Summer? Why Now May Be the Sweet Spot
Converting now would enable you to spread a possible tax hit over more than one payment while reducing future taxes.
-
A Financial Expert's Three Steps to Becoming Debt-Free (Even in This Economy)
If debt has you spiraling, now is the time to take a few common-sense steps to help knock it down and get it under control.
-
I'm an Insurance Expert: This Is How Your Insurance Protects You While You're on Vacation
Here are three key things to consider about your insurance (auto, property and health) when traveling within the U.S., including coverage for rental cars, personal belongings and medical emergencies.
-
Stock Market Today: It's 'Most Sectors Go' Ahead of Independence Day
The resilience trade continues to work, even for sectors and stocks with specific uncertainties.
-
June Jobs Report Dashes July Rate Cut Hopes: What the Experts Are Saying
The June jobs report shows that hiring remains strong and gives the Fed a little extra breathing room when it comes to interest rates.
-
Investing Professionals Agree: Discipline Beats Drama Right Now
Big portfolio adjustments can do more harm than good. Financial experts suggest making thoughtful, strategic moves that fit your long-term goals.
-
'Doing Something' Because of Volatility Can Hurt You: Portfolio Manager Recommends Doing This Instead
Yes, it's hard, but if you tune out the siren song of high-flying sectors, resist acting on impulse and focus on your goals, you and your portfolio could be much better off.