Alphabet antitrust remedies viewed as ‘clearing event’; analysts turn positive

Published 03/09/2025, 11:28
Updated 03/09/2025, 11:38
© Reuters

Investing.com -- Alphabet shares surged after U.S. District Judge Amit Mehta issued his ruling in the government’s antitrust case, a decision that analysts said removed the risk of structural breakups and offered clarity for investors.

DA Davidson described the decision as a “win for shareholders and accommodating for big tech,” noting the ruling allows Google to keep its Chrome browser while barring new exclusive contracts. 

The firm explained that the court rejected calls for structural remedies, concluding that “plaintiffs in the case overreached in seeking forced divestiture of key assets.” 

DA Davidson said the event was a “parting of the clouds” for investors concerned about a potential Chrome divestiture, though it maintained a Neutral rating with a $190 price target.

Evercore ISI called the decision a “clearing event” and even a “best case scenario,” reiterating Alphabet as its top pick with a $240 price target. 

Analysts also highlighted that remedies will bar exclusive terms in distribution contracts, extend nonexclusivity protections to GenAI products, and require limited data-sharing and syndication to competitors. 

“Bottom line, we view these results as a ‘best case scenario,’” Evercore said.

BMO Capital also flagged the outcome as a net positive, writing: “The decision allows Google to continue paying for Search distribution, but bars it from exclusive contracts — a positive for Apple and other distribution channels.” 

While Google must share “some” search data with competitors, BMO said the requirement “falls short of full-scale information sharing.” The bank reiterated its Outperform rating and top-pick status for Alphabet.

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