Can Alphabet Stock Keep Rising After Ruling? What Analysts Think.

Alphabet stock has risen 12% since the ruling came out on Sept. 2. (Lauryn Ishak/Bloomberg)

Alphabet stock has been on a tear since a federal district court judge laid out what the company will have to do in response to his finding that the tech giant operates as a monopoly. Evercore ISI says the gains can continue.

Analyst Mark Mahaney raised his price target on Alphabet to $300 from $240 on Sunday. That implies a 28% increase from the stock’s closing price of $234.79 on Friday.

“With the ‘clearing event’—aka Judge Mehta’s remedies decision—behind us, the market will now focus on GOOGL fundamentals,” Mahaney wrote. “What we see is a Core Catalyst, with Google Search revenue growth likely to remain DD% [double digit] for the foreseeable future,” He rates Alphabet as Outperform.

Google was ruled to have a monopoly in general search services and general text advertising in August 2024. Investors have been waiting since then to hear what remedies the judge in that case, Amit Mehta, would put in place in response.

The district court judge released his remedies on Sept 2. The list included barring the search company from entering exclusive contracts that relate to distribution of Google Search, Chrome, Google Assistant, and the Gemini app, and also forces Google to share certain search index data with competitors.

However, Google won’t have to divest its Chrome web browser or stop paying companies like Apple to make it the default search provider. Those were some potential remedies investors feared.

Shares of Alphabet have risen 12% since the ruling came out. The stock has risen for four consecutive trading sessions, and is having its best four-day stretch since Dec. 11, 2024, according to Dow Jones Market Data.

Mahaney noted that there is clear competition ahead from generative artificial intelligence search engines. However, Google’s own AI innovations “are creating an overall better Search Engine for users, which should translate into consistently robust Search Revenue growth,” he said.

Other analysts are also feeling optimistic. BofA Securities analyst Justin Post raised his price target on the stock to $252 from $217 while maintaining a Buy rating on Sept. 3.

“DoJ remedy uncertainty was one of two big stock overhangs,” Post wrote in a note. The other challenge has been AI search competition, but Post also believes that Google’s own AI software can help “better retain users.”

Not everyone on Wall Street is as bullish about Alphabet stock’s near-term future, though. Phillip Securities analyst Serena Lim Yi Qi downgraded her rating of Alphabet to Accumulate from Buy “due to recent price rally.” Still, she raised her price target to $265 from $235, saying she also expects “GOOGL to continue benefitting from AI-driven product enhancement and operational efficiencies.”

Shares of Alphabet were 0.1% higher at $235.07 on Monday.

Write to Angela Palumbo at angela.palumbo@dowjones.com