Google Dodges Antitrust Bullet, Ad Tech Ruling Boosts Alphabet Stock
A federal judge has rejected the US Justice Department's attempt to force Alphabet, Google's parent company, to sell parts of its ad-tech business. This decision comes exactly one year after a different judge rejected the government's request to make Google sell its Chrome browser.
The ruling is seen as a significant win for Alphabet investors, who may breathe a sigh of relief given the company's massive spending on AI infrastructure. In the second quarter, Alphabet's advertising business generated $81.63 billion in revenue, with Google Search bringing in $63.27 billion and YouTube advertising contributing $11.05 billion.
Analysts have high expectations for Alphabet stock, with revenue estimates for the next quarter reaching over $141 billion, up 23.9% from last year. The company's advertising engine is critical to funding its massive capex plans, estimated at $175 billion this year alone and likely to rise in 2027.