US Court Upholds Google Search Deal, Boosts Apple, Alphabet Targets

A recent federal court ruling in Google's antitrust case has positively impacted both Google and Apple, leading Bank of America to raise its stock price targets for the companies to $252 and $260 respectively. The judgment by U.S. District Judge Amit Mehta allows Google to continue paying partners, including Apple, for default search engine placement, preserving a key revenue stream for Apple’s Services business that was at risk. The ruling denied the U.S. Department of Justice's request to break up Google, including divesting its Chrome browser, though it imposed restrictions on exclusive contracts related to search and browser distribution. Analysts view this decision as a major relief, enabling Google to focus resources on AI innovation with its Gemini model, while maintaining a competitive edge in search amid rising AI-driven rivals. Apple's stock also benefited from the clarity provided by the ruling, as the default search deal with Google remains intact, which is worth tens of billions annually. The positive market reaction reflects optimism about sustained growth and improved regulatory environments for both tech giants.