Google Parent Alphabet Appeals Landmark Antitrust Ruling

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Alphabet Inc. has formally filed an appeal against a pivotal antitrust verdict that found its subsidiary, Google, guilty of illegally monopolizing the online search market. The appeal, lodged on Friday, coincides with a corporate request to suspend core sanctions until the legal challenge concludes. Following the news, Alphabet shares declined 0.84% to $330.00.

Despite the ongoing legal uncertainty, several financial institutions have recently raised their price targets for the tech giant. Analysts at Cantor Fitzgerald upgraded the stock to Overweight in early January, lifting their target from $310 to $370. They cited Alphabet's commanding position across multiple layers of the AI technology stack. Other firms are even more optimistic: Canaccord Genuity sees a fair value of $390 per share, while Scotiabank's target stands at $375.

Bank of America analyst Justin Post highlighted the rapid adoption of AI within Google's cloud division, noting that 70% of Google Cloud customers are now using AI products. "Google possesses the chips, the infrastructure capacity, and the models in a market of growing demand," Post stated. Overall, 48 out of 55 covering analysts currently recommend buying the stock.

Core Appeal Focuses on Data-Sharing Mandate

In a corporate blog post addressing the appeal, Google's Vice President of Regulatory Affairs, Lee-Anne Mulholland, argued that the original ruling by U.S. District Judge Amit Mehta disregarded market reality. She contended that consumers choose Google voluntarily, not due to a lack of alternatives.

The company's request for a stay centers specifically on one sanction: the mandate to share search data with competitors, including generative AI providers like OpenAI. Google warns that compelled data sharing could irreversibly expose trade secrets, with no recourse should the company later prevail in its appeal. The sanctions, finalized in December 2025, include three key measures:
* An obligation to provide access to its search index and user interaction data to "qualified competitors."
* A prohibition on exclusive search agreements with terms exceeding one year.
* Restrictions on app pre-installations, including for its Gemini chatbot, limiting such deals to one-year contracts.

Notably, Alphabet is seeking to pause only the data-sharing requirement, indicating provisional acceptance of the other conditions. The U.S. Department of Justice, which had initially pushed for a forced divestiture of the Chrome browser—a request Judge Mehta denied—has until February 3, 2026, to file its own cross-appeal.

Upcoming Earnings and Market Context

The appeals process is anticipated to last between 12 and 18 months, potentially keeping the sanctions on hold throughout that period. This legal development follows a period of significant momentum for Alphabet, which joined Nvidia, Microsoft, and Apple in early January as the fourth company to reach a $4 trillion market valuation. This milestone was fueled by the launch of the Gemini 3 AI model, the new Ironwood TPU chip, and the integration of Gemini into Apple's Siri.

Investors will now look ahead to the company's next quarterly report, scheduled for late April. For the full fiscal year, analysts are projecting revenue growth of approximately 14%.