Alphabet's stock surges 6% after federal court ruling; ETFs tracking the company see gains.

Alphabet's stock surged 6% in pre-market hours after a federal court ruling eased antitrust fears. The court overruled harsh penalties proposed by the DOJ, allowing Google to continue paying companies to preload its products. ETFs with exposure to Alphabet include IShares Global Comm Services ETF, Fidelity MSCI Communication Services Index ETF, Vanguard Communication Services ETF, Communication Services Select Sector SPDR Fund, and MicroSectors Focused Communications ETF. These ETFs have a combined exposure of around 14.49% to GOOGL.

Alphabet Inc.'s stock surged 6% in pre-market hours on Wednesday, September 2, 2025, following a federal court ruling that eased antitrust fears. U.S. District Judge Amit Mehta overruled harsh penalties proposed by the U.S. Department of Justice (DOJ) against Google, which would have forced the tech giant to divest Chrome. This ruling allows Google to continue paying companies to preload its products, but bars exclusive contracts tied to payments or licensing [1].

The federal court's decision averted the worst possible outcome for Google, allowing the company to keep paying Apple billions to remain the default iPhone search engine and exempting it from divesting the Android operating system. This ruling is a significant victory for Alphabet, as it removes a major regulatory overhang and preserves its market dominance [1].

The positive ruling has sparked interest in ETFs with exposure to Alphabet. Some of the ETFs with significant exposure to Alphabet include IShares Global Comm Services ETF, Fidelity MSCI Communication Services Index ETF, Vanguard Communication Services ETF, Communication Services Select Sector SPDR Fund, and MicroSectors Focused Communications ETF. These ETFs have a combined exposure of around 14.49% to GOOGL [2].

Alphabet's stock has gained about 12% year to date and about 46% since early April, reflecting its strong growth and momentum. The company's Zacks Rank #3 (Hold) indicates a neutral outlook, but the recent ruling may influence investors to reassess their positions [2].

Investors should monitor the impact of this ruling on Alphabet's stock and the broader tech sector. The decision to allow Google to continue its current practices may set a precedent for other tech giants facing antitrust scrutiny, potentially affecting their stock prices and market positions.

References:
[1] https://www.ainvest.com/news/google-stock-surge-catalyst-tech-sector-dynamics-2025-2509/
[2] https://finviz.com/news/158235/alphabets-stock-jumps-as-antitrust-fears-ease-etfs-in-focus