Alphabet jumps as court blocks Google breakup, Bank of America hikes price targets for tech giants

Alphabet shares surged 6% in premarket trading Wednesday after a U.S. court rejected the Department of Justice’s (DOJ) attempt to break up Google in an antitrust case, a ruling that prompted Bank of America to raise price targets for both Alphabet and Apple.

The DOJ had sought sweeping remedies, including forcing Google to divest its Chrome browser, after the company was found to hold an illegal monopoly in internet search. But U.S. District Judge Amit Mehta declined to impose the harshest measures, allowing Google to keep Chrome and its Android operating system.

Under the decision, Google can also continue paying companies to preload its products, such as being the default search engine on Apple’s iPhones. However, exclusive contracts that condition payments or licensing will no longer be permitted.

Apple shares also traded higher premarket following the ruling.

“This is a monster win for Cupertino and for Google it’s a home run ruling that removes a huge overhang on the stock,” said Daniel Ives, global head of technology research at Wedbush Securities.

Bank of America echoed that optimism, boosting its price target for Alphabet from $206 to $235 and for Apple from $230 to $250, citing improved regulatory clarity and growth prospects.

Google continues to face rising competition from AI-driven search rivals like Perplexity and OpenAI, but its advertising business remains strong. The company is betting on Gemini, its suite of AI models and chatbot, to drive future growth.

With Android powering about 70% of global smartphones, analysts see the platform as a key distribution channel for Gemini and other AI products, reinforcing Google’s long-term competitive advantage.