Alphabet Stock Price Target Raised to $270 After Favorable Antitrust Ruling by Canaccord

Canaccord Genuity has upgraded the stock price target for Alphabet to $270 from $230, keeping a Buy recommendation on the tech giant. The development comes after a favorable ruling on the ongoing Google-DOJ antitrust case, which analysts have been calling “relatively lenient” with respect to the expectations. As per the InvestingPro data, Alphabet shares ended the day at $230.66, bringing the company’s market cap to $2.79 trillion and marking an impressive growth of 48% year to date.

Sense of Relief                    

On Tuesday, Judge Amit Mehta solidified his decision on providing some remedies that saved Google from the worst-case outcomes. The most important progress in this aspect is that the court has decided against ordering the breakup of Google, leaving intact some of its core assets, such as the Chrome browser and Android operating system. Instead, Google faces restrictions on entering into exclusive search default agreements, but it can still pay to preload or place its search engine in other apps.

In addition, while the ruling binds Google to share some data assets with its competitors, the court also saved the company from being forced to disclose its most valuable and proprietary search query data and ad data. This represents a meaningful victory for Alphabet, as the court’s decision protects key pillars of the business model.

Strong Path Ahead for Analysts

Canaccord reasoned that for quite some time Alphabet’s stock had been stuck in regulatory uncertainties which prevented it from fully participating in the multiples expansion that many large-cap tech peers had benefited from. In their view, such a ruling removes extension and improves visibility for both investors and the company itself. Thus, the updated price target reflects that trajectory with this brightened outlook. It is believed that Alphabet could continue with the upward momentum as the legal fog starts to clear up.

Other firms have similarly made positive announcements. Pivotal Research upgraded its price target from $245 to $300, mentioning ‘a resounding court victory’. While Truist Securities reaffirmed its Buy rating with a price target of $225, along with celebrating the rejection of extreme remedies that could have required eviction of Chrome or Android.

Regulatory Unrest Persists

Other than the win, there are other challenges for Alphabet. In France, the data authority recently slapped Google with a fine of €325 million for infringing cookie regulations, which is part of a wider European restriction on user tracking practices. Also, in the U.S the remedies phase in the DOJ antitrust action leaves Google under scrutiny, though the immediate danger of a breakup has receded.

That said, the ruling’s leniency illustrates the ability of Alphabet to withstand regulatory battle, along with holding its top position in digital advertising and search. This avoidance of remedial measures gives Alphabet the space and time to maintain its competitive spirit while exploring and expanding into other areas, including AI and cloud computing, and even Waymo in its self-driving cars.

Strategic Partnerships Fuel Growth

Alphabet, in keeping up with its strategic initiative, is announcing a major partnership. Revolut, the global financial technology company, announced its multi-year partnership with Google Cloud to boost its global infrastructure. This partnership indicates an increased footprint for Alphabet in the cloud services sector, along with cloud services becoming an increasingly important area of diversification besides ad revenue.

Robust Assurance & Advanced Prospects

Now that the regulatory uncertainties are diminishing and analysts are upgrading their forecasts, Alphabet is better positioned to benefit from the confidence of investors. The way the share price is moving, it gives an indication that the market participants are prepared to overlook the company’s various litigations to some extent, provided that the growth narrative and the robust business operations of the company remains intact. Thus it will be really important to see the next earnings call on 28 October 2025, which will be an opportunity for investors to check the continuity of both sustained revenue growth and margin improvement.

Nevertheless, the real matter that should be of concern to the investors is not whether Google wins its fights, but whether the company is able to keep its pace of growth fast enough to be worth its increasing valuation in the AI-driven world. After the signing of a new deal, along with the strengthening of its cloud footprint, and having a market cap of $2.79 trillion, the next stage of growth unfolds.

Even so, the road for Alphabet will have some obstacles since Europe is imposing stricter conditions for data security and the American regulators are definitely not done yet. Investors can soak up the stock’s current heat but they should not forget that no matter how big and strong, the tech giants are not immune from the law forever.