Google Stock Rises Despite Antitrust Losses
What happened
Alphabet's stock has risen 65% over the past year, despite losing two major antitrust cases related to its search services and text advertising. Market confidence has propelled the company past Apple to become the world's second-most valuable firm, behind Nvidia. A separate California data privacy verdict against Google was recently capped by a judge at $2.36 billion.
Why it matters
- One major antitrust case, brought by "Fortnite" developer Epic Games, successfully argued that Google's Play Store for Android apps operates as an illegal monopoly. The lawsuit, filed in 2020, challenged the 15-30% commission Google takes on in-app transactions. - The Department of Justice (DOJ), along with several states, filed a separate antitrust lawsuit in 2020, accusing Google of unlawfully monopolizing the search and search advertising markets. A judge ruled that Google did illegally maintain its monopoly in search, but the remedies did not include the forced sale of its Chrome browser or Android operating system. - In the DOJ case, led by Assistant Attorney General Jonathan Kanter, the court ordered Google to end exclusive contracts that made its search engine the default on mobile devices and browsers. The company must also share some search data with competitors to foster competition in the burgeoning AI space. - Investor confidence appears to be buoyed by the perception that the legal remedies imposed are manageable and do not fundamentally alter Google's core business. Analysts have noted that the lengthy appeals process for these cases could delay any significant impact for years. - The California data privacy case involved allegations that Google continued to collect user data even when tracking settings were turned off. A jury initially awarded $425 million to a class of 98 million users, but the plaintiffs' attorneys are seeking to increase the amount to $2.36 billion. - Another California lawsuit resulted in a jury ordering Google to pay $314.6 million to Android users in the state for misusing their cellular data. The lawsuit, filed in 2019, argued that Google improperly collected information from idle Android phones for purposes like targeted advertising. - Alphabet's strong performance in its cloud computing division and advancements in artificial intelligence with its Gemini model are seen as key growth drivers, contributing to positive market sentiment. The company's Google Cloud segment saw a 48% year-over-year revenue increase in the fourth quarter of 2025. - Despite the legal challenges, many financial analysts maintain a "Buy" or "Overweight" rating on Alphabet's stock, viewing it as undervalued compared to other tech giants. As of late 2025, the stock had gained over 60% for the year, outperforming other members of the "Magnificent Seven" tech stocks.
Key numbers
- Alphabet's stock has risen 65% over the past year, despite losing two major antitrust cases related to its search services and text advertising.
- A separate California data privacy verdict against Google was recently capped by a judge at $2.36 billion.
- The lawsuit, filed in 2020, challenged the 15-30% commission Google takes on in-app transactions.
- The Department of Justice (DOJ), along with several states, filed a separate antitrust lawsuit in 2020, accusing Google of unlawfully monopolizing the search and search advertising markets.
What happens next
- Analysts have noted that the lengthy appeals process for these cases could delay any significant impact for years.
Quick answers
What happened in Google Stock Rises Despite Antitrust Losses?
Alphabet's stock has risen 65% over the past year, despite losing two major antitrust cases related to its search services and text advertising. Market confidence has propelled the company past Apple to become the world's second-most valuable firm, behind Nvidia. A separate California data privacy verdict against Google was recently capped by a judge at $2.36 billion.
Why does Google Stock Rises Despite Antitrust Losses matter?
One major antitrust case, brought by "Fortnite" developer Epic Games, successfully argued that Google's Play Store for Android apps operates as an illegal monopoly. The lawsuit, filed in 2020, challenged the 15-30% commission Google takes on in-app transactions. The Department of Justice (DOJ), along with several states, filed a separate antitrust lawsuit in 2020, accusing Google of unlawfully monopolizing the search and search advertising markets. A judge ruled that Google did illegally maintain its monopoly in search, but the remedies did not include the forced sale of its Chrome browser or Android operating system. In the DOJ case, led by Assistant Attorney General Jonathan Kanter, the court ordered Google to end exclusive contracts that made its search engine the default on mobile devices and browsers. The company must also share some search data with competitors to foster competition in the burgeoning AI space. Investor confidence appears to be buoyed by the perception that the legal remedies imposed are manageable and do not fundamentally alter Google's core business. Analysts have noted that the lengthy appeals process for these cases could delay any significant impact for years. The California data privacy case involved allegations that Google continued to collect user data even when tracking settings were turned off. A jury initially awarded $425 million to a class of 98 million users, but the plaintiffs' attorneys are seeking to increase the amount to $2.36 billion. Another California lawsuit resulted in a jury ordering Google to pay $314.6 million to Android users in the state for misusing their cellular data. The lawsuit, filed in 2019, argued that Google improperly collected information from idle Android phones for purposes like targeted advertising. Alphabet's strong performance in its cloud computing division and advancements in artificial intelligence with its Gemini model are seen as key growth drivers, contributing to positive market sentiment. The company's Google Cloud segment saw a 48% year-over-year revenue increase in the fourth quarter of 2025. Despite the legal challenges, many financial analysts maintain a "Buy" or "Overweight" rating on Alphabet's stock, viewing it as undervalued compared to other tech giants. As of late 2025, the stock had gained over 60% for the year, outperforming other members of the "Magnificent Seven" tech stocks.
