Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) surged in after-hours trading after a federal judge ruled the company will not have to divest its Chrome browser or Android operating system in a landmark antitrust case, prompting praise from Wall Street analysts and sharp criticism from Sen. Elizabeth Warren (D-Mass.).
Judge Rules Against Forced Divestitures
On Tuesday, U.S. District Judge Amit Mehta issued a sealed decision rejecting the Department of Justice's request to break up key Google assets, writing that "Plaintiffs overreached in seeking forced divestiture of these key assets."
The ruling follows a five-year legal battle that last year found Google held an illegal monopoly in search.
Alphabet's Class A shares jumped 7.07% in after-hours trading, while Class C shares climbed 6.73%, according to Benzinga Pro.
Apple Inc. (NASDAQ:AAPL) also gained nearly 3% after Mehta ruled Google can maintain payments to Apple for making its search engine the default on iPhones.
Dan Ives Calls Ruling A ‘Huge Win' For Big Tech
Wedbush analyst Dan Ives called the decision a "huge win" for Google and Apple, adding that it removes a major overhang for both companies.
"Good news for big tech, the regulator's bark is bigger than the bite," said Gene Munster of Deepwater Asset Management, noting that Apple's lucrative Google search deal—estimated to account for 15% of Apple's operating income—survived intact.
Investment advisor Ross Gerber echoed the sentiment, posting on X, formerly Twitter, "Google gets off with a slap on the hand and the stock roars higher. Love it!"
Warren Slams Ruling As ‘Slap On The Wrist'
Sen. Warren criticized the court's decision, arguing that the Donald Trump administration should appeal to "break up this Big Tech giant."
In a post on X, she also raised concerns about separate negotiations between Google, YouTube executives and Trump's legal team over a longstanding censorship lawsuit, calling the talks "dubious" and a sign of "corruption in plain sight."
Last month, several senators, including Warren and Sen. Bernie Sanders (I-Vt.), sent a letter to Alphabet CEO Sundar Pichai and YouTube CEO Neal Mohan asking if settlement discussions with Trump's lawyers involved promises of favorable treatment.
What Are The Next Steps
While Google avoided divestiture, the court ordered the company to share some search data with competitors, a move it plans to appeal, arguing it could expose proprietary technology.
Benzinga's Edge Stock Rankings indicate that GOOGL maintains strong momentum across short, medium and long-term timeframes. You can find more detailed performance insights here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
