Alphabet's Stock Jumps as Antitrust Fears Ease: ETFs in Focus

Core Viewpoint - Shares of Alphabet (GOOGL) increased approximately 6% in pre-market trading following a favorable federal court ruling that overruled severe penalties proposed by the U.S. Department of Justice, allowing Google to retain its Chrome browser and continue its business practices [1][3]. Company Summary - Alphabet (GOOGL) is part of the Zacks Internet - Services industry and holds a Zacks Rank of 3 (Hold). The company has demonstrated strong growth, with a year-to-date gain of about 12% and an increase of approximately 46% since early April [2]. - The recent court ruling is seen as a positive development for Google, as it allows the company to maintain its financial arrangements with Apple and retain control over the Android operating system [4]. Court Decision Details - The federal court ruling prevents Google from being forced to sell Chrome and allows it to continue paying companies to preload its products, although it prohibits exclusive contracts related to payments or licensing [3]. - The ruling permits Google to continue paying Apple billions to remain the default search engine on iPhones, which is a significant aspect of its business strategy [4]. ETFs Exposure - The legal developments are expected to positively impact Alphabet's stock, leading to potential interest in ETFs that have exposure to the company. Several ETFs with notable exposure to GOOGL include: - IShares Global Comm Services ETF, with 14.49% exposure to GOOGL and an asset base of $589.1 million [6]. - Fidelity MSCI Communication Services Index ETF, with 13.90% exposure to GOOGL and an asset base of $1.72 billion [7]. - Vanguard Communication Services ETF, with 13.32% exposure to GOOGL and an asset base of $5.52 billion [8]. - Communication Services Select Sector SPDR Fund, with 12.14% exposure to GOOGL and an asset base of $25.17 billion [10]. - MicroSectors FANG+ ETN, with 10% exposure to GOOGL and an asset base of $490.7 million [11].