Google's Big Win: A New 'Buy' Signal for GOOGL Stock?

Google investors can finally breathe easy.

On September 2nd, U.S. District Judge Amit Mehta delivered what might be the best news Google investors have heard all year: Google won't be forced to sell Chrome, its dominant web browser that's central to everything the company does.

Alphabet stock (GOOGL) surged in premarket trading around $223 to $225.57, rising by nearly 6%, as investors celebrated this regulatory victory. 

The Department of Justice had pushed for Chrome's sale as their option in the antitrust case, but Judge Mehta said "not so fast" and opted for much lighter penalties instead.

This isn't just about keeping a browser. Chrome is Google's gateway to billions of users and a crucial piece of their advertising empire. 

Losing Chrome would have fundamentally broken Google’s business model; imagine trying to run an advertising business when you can't control how people search the web.

Behind all the regulatory drama, Google's core business is performing exceptionally well. 

The company's Q2 2025 results were nothing short of impressive, with revenue surging 14% to $96.4 billion and EPS hitting $2.31, easily beating Wall Street's $2.17 expectation.

But here's the real story: Google Cloud is becoming a money-making machine. 

The cloud division grew 31.6% to $13.6 billion in quarterly revenue, with operating margins nearly doubling to 20.7%. That's not just growth, that's the kind of profitable growth that makes investors' hearts skip a beat.

Google Cloud is now running at over $50 billion annually, and it's finally proving it can make serious money, not just chase market share. 

Operating income more than doubled to $2.8 billion, showing this isn't just about spending money to win deals anymore.

Even Google's core search business is holding strong against AI competitors. Search revenue grew 12% to $54.2 billion, proving that rumors of Google's search dominance being dead were greatly exaggerated. 

Google’s AI Overviews feature has already attracted 1.5 billion monthly users, showing Google can evolve with the times while keeping advertisers happy.

ChatGPT controls roughly 60-76% of the generative AI market, while Google's Gemini sits at just 13-16%. That's like being the king of landline phones while everyone's switching to smartphones.

But before you panic, consider this: Google's AI Overviews show brands in 36.8% of queries compared to ChatGPT's measly 3.9%.

Google still knows how to make money from search better than anyone else, even as the search experience evolves.

The company is betting big on staying relevant, raising its 2025 spending plans to $85 billion: a $10 billion increase mostly going toward AI infrastructure and data centers.

That's a massive investment, but it shows management believes the AI boom is real and long-lasting.

No investment is risk-free, and Google faces some real challenges. 

EU is still a major headache. Under the Digital Markets Act, Google could face fines up to 10% of global revenue, that's roughly $28 billion based on current numbers. European regulators aren't as friendly as Judge Mehta proved to be.

There's also the generational shift to worry about. Younger users increasingly turn to AI-native platforms for answers instead of traditional Google search. 

It's not happening overnight, but Google's search market share has dipped below 90% for the first time since 2015.

With the Chrome threat eliminated, Google can focus on what it does best: making money from organizing the world's information. 

GOOGL stock trading around $223 to $225.57 in premarket hours. Morningstar analysts sees an average price target of $237.

The antitrust victory buys Google time to figure out AI without having to rebuild its entire business model. For investors wanting exposure to both digital advertising's stability and AI's growth potential, Google offers both in one package.

Key things to watch: Can Google Cloud keep growing profitably? Will AI-enhanced search features actually make more money? And can the company balance heavy AI investments with the margin expansion investors love?

Now it's time to see if Google can prove that even in an AI world, being the web’s front door is still one of the best businesses around.

Gold’s at a Record High. Time to Sell or Hold?