Google parent Alphabet recently dodged one legal bullet. However, when a second antitrust case, this time focused on digital advertising, restarts on Sept. 22, the outcome could be less favorable for Google stock.
In early September, Google stock rallied when a federal judge ruled that no asset divestitures will be required as part of remedies in an antitrust case involving the tech giant's internet search business.
But the digital ad case has a different focus. In April, Judge Leonie Brinkema of the U.S. District Court for the Eastern District of Virginia ruled that Google has used classic monopoly-building tactics to dominate online advertising. The Department of Justice had claimed Google's dominance of the digital ad market has damaged advertisers and content creators.
Starting Sept. 22, Brinkema will hold hearings to discuss possible remedies.
The government has stated that Google should sell off its Google Ad Manager, which includes the company's publisher ad server and its ad exchange. The ad servers and the market for ad exchanges sit between buyers and sellers.
Brinkema is expected to issue a remedies ruling in early 2026.
Not Out Of The Woods?
"Google is not yet out of the woods," BMO Capital Markets analyst Brian Pitz said in a report.
"Unlike the search case, we believe that a structural remedy is more likely here," he said.
Digital ad companies such as Trade Desk, PubMatic and Magnite have a stake in the judge's decision. Amazon.com also could get a lift, depending on legal remedies chosen.
"Demand side" players like Trade Desk help advertisers, brands and media agencies buy space while "supply side" players such as Magnite and Pubmatic work with publishers, media owners and app developers that sell space at websites.
"For the ad-tech trial, the structural linkage of Google Ad Manager and AdX supply side assets and the impact on ad auctions is the main point of contention," Raymond James analyst Andrew Marok said in a report. "While a behavioral remedy is not impossible here, we see a structural solution as more likely."
Google Selling Ad Manager?
According to reports, Google is preparing for a breakup of some kind by approaching ad buyers about changes in Google Ad Manager.
Some analysts have called it the "DoubleClick trial." In 2008, Google acquired leading digital advertising firm DoubleClick for $3.1 billion. DoubleClick's technology provided ad measurement data across the internet.
Google's digital ad business is enormous with many moving parts.
In search, new competition from OpenAI's ChatGPT, Perplexity and others has forced Google to overhaul its search results. ChatGPT delivers answers to search queries, while Google's business model has been based on providing weblinks.
Google began deploying AI Overviews in the U.S. in mid-2024, with conversational summaries topping links for many search queries. The long-range question is how Google search ad revenue growth will be impacted by the AI Overviews format.
Then, there's the impact of AI agents that perform autonomous tasks on behalf of humans, including shopping. As a result, bots will roam the web rather than Google providing links at the top of search results.
Google Stock Technical Ratings
Google's search engine optimization (SEO) technology could evolve into agentic engine optimization (AEO), noted a Citigroup report. In addition, Google's cost-per-click (CPC) advertising model could shift to "cost per agentic action" (CPAA), the Citi report said.
Meanwhile, Google stock has gained 24% in 2025 after underperforming in the first half of the year.
Google stock holds an IBD Composite Rating of 98 out of 99, according to IBD Stock Checkup.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Further, Google stock has an Accumulation/Distribution Rating of A-. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. Its current rating indicates more funds are buying than selling.
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