Alphabet’s stock concluded Thursday’s trading session with a decrease of 1.4%. This occurred as the S&P 500 experienced a slight increase of 0.1%, while the Nasdaq Composite fell by 0.1%. The day saw Alphabet’s stock fluctuate significantly; initially, it rose by up to 1% before declining by as much as 3% due to varying catalysts. Despite new analyst price targets indicating potential upside, the stock dropped after the company faced an unfavorable antitrust ruling.
Alphabet’s stock initially surged following the release of new price targets. Before market hours, Morgan Stanley issued a report reaffirming its overweight rating but adjusted its one-year stock target from $210 to $185 per share. This target implied about a 20% potential upside from its opening price. Similarly, Truist issued a report maintaining its buy rating and adjusted its one-year target from $220 to $200 per share, suggesting a 30% potential upside at market open.
The stock’s decline followed a ruling by U.S. District Judge Leonie Brinkema, determining that Alphabet had intentionally created and sustained a monopoly in the digital ad-network sector. Alphabet plans to appeal the ruling, arguing that its success in digital advertising stems from its tools being simple, affordable, and effective. The court decision increases the possibility that Alphabet might eventually divest its Google advertising network, although the appeals process suggests such a move could be protracted.
