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Why Apple Stock Is Rising Amid Today’s Google Antitrust Ruling

A U.S. federal court delivered a ruling in the antitrust case against Google (Alphabet)—a decision that’s giving both companies a lift today:

  • The court rejected the Department of Justice’s push to break up Google, including forcing the sale of Chrome or Android, or banning its lucrative payments to Apple for default search placement on Apple devices.

  • These default search deals generate over $20 billion annually for Apple, and are extremely high-margin revenue streams. Protecting them avoids a serious blow to Apple’s profits, especially at a time when iPhone growth is sluggish.

  • Investors see this as a major win: Apple stock is up ~3%, while Alphabet is seeing even sharper gains.

Wedbush analysts went so far as to call the decision a ā€œmassive winā€ for both Apple and Google, underlining the boost to stock outlooks and the ongoing strength of their AI-driven partnership.

The Big Picture: Why This Matters for Apple

  1. Preserving a Key Revenue Stream
    Google's continued payments directly benefit Apple’s services segment, which is more profitable than its hardware business. Without that money, Apple’s margins could take a hit just as it needs capital to invest in AI and address other headwinds.

  2. Avoiding Disruption at a Critical Time
    Apple is grappling with slowdown in iPhone revenue growth and increased geopolitical and competitive pressures. Losing this revenue would have been a major blow amid those challenges.

  3. Market Relief from Legal Uncertainty
    With this ruling, one significant legal risk has been defused. While the antitrust case continues—and future remedies are possible—the status quo remains intact for now, providing clarity and reassurance to investors.

Bottom Line

Apple’s stock is moving higher because the antitrust ruling safeguards a critical, high-margin revenue stream from Google—its default search payments—at a time when margins matter more than ever. The decision also reduces regulatory overhang and reassures investors that Apple’s cash flows remain relatively stable.

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Jeff Williams

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