Can Google Stock Unlock $1 Trillion After Antitrust Victory?

Core Insights - Google's stock surged 6% after a federal judge ruled that the company will not be required to sell its Chrome browser as part of antitrust penalties, alleviating significant concerns for investors [2][3] - The Chrome browser is crucial to Google's business model, serving as a primary gateway to its search engine and advertising revenue, with its value estimated in the trillions [3] - Although the ruling was favorable, it included restrictions preventing Google from entering exclusive search contracts, such as the one with Apple, while still allowing deals that make Chrome the default browser [4] Legal and Regulatory Context - Google faces another legal challenge, with a separate court ruling last year finding the company guilty of illegally monopolizing online search and advertising markets, with a final verdict expected on September 10 [5] - The regulatory risks are part of a broader risk assessment framework, but they have significantly impacted Google's valuation compared to its peers [6] Valuation and Market Position - Google is currently trading at a lower valuation multiple of 22 times trailing earnings, compared to Amazon at 35 times, Microsoft at 37 times, and Meta at 28 times [7] - The valuation gap is seen as unjustified given Google's strong fundamentals, including solid revenue growth and improving profitability margins [8] - If Google's valuation were to align with its peers at 35 times, it could lead to stock prices exceeding $320, representing a potential 50% upside and adding over $1 trillion to its market cap [9] Future Outlook - The recent ruling is viewed as a turning point for Google's stock, as it may allow the company to start closing the valuation gap with its peers [11] - While the company is not entirely out of the woods due to the upcoming verdict on September 10, the latest development suggests that the worst-case scenarios may be behind it [12]