"Alphabet Inc. shares are suddenly unshackled after a long-awaited antitrust ruling removed a key risk that's weighed on the stock for months. The decision by a US district court judge Tuesday enabled Google's parent to avoid the most punitive measures sought by regulators, including the sale of its Chrome browser. That sent the stock up nearly 10% over the past two days, putting it within striking distance of a $3 trillion market value."
"With the case now out of the way, investors are turning their attention back to the potential for gains in Alphabet's stock, which is the cheapest among the Magnificent Seven despite the recent rally. What it does is it clears the runway for additional growth opportunities, said Neville Javeri, senior fund manager at Allspring Global Investments, referring to the ruling. He sees an incredible opportunity in the stock as the decision sets them up for a growth opportunity that might have been taken away."
"Shares rose 0.3% on Friday. The stock has gained more than 20% since the July 23 earnings report, vaulting Alphabet into the top third of performers in the Nasdaq 100 Index this year, after months of struggles amid concerns about antitrust risks and fears that AI upstarts could eat away at its Google search business, which accounts for more than half of revenue."
A US district court decision prevented the most punitive remedies against Google, including the forced sale of Chrome, reducing a major overhang on Alphabet shares. The stock climbed nearly 10% over two days and moved closer to a $3 trillion market value. Investors are refocusing on upside potential, with Alphabet trading as the cheapest among the Magnificent Seven despite recent gains. Fund managers view the ruling as clearing a runway for growth. Second-quarter results showed AI demand lifting sales, and new AI features have strengthened investor confidence in Alphabet's ability to defend its search franchise against rivals like OpenAI.
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