Google parent Alphabet (GOOG, GOOGL) became the fourth company to hit a market cap of $3 trillion Monday. The stock move comes after the company avoided the worst of the potential consequences in its antitrust trial, with federal district court Judge Amit Mehta ruling earlier this month that Google won't have to sell its Chrome browser.
Google joins the likes of Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA) in the $3 trillion space, though Nvidia has since climbed to $4 trillion on the strength of its AI chips.
Google is one of the key players in the AI race thanks to its Gemini models and chatbot. The company, like Microsoft and Amazon, also bakes its AI into its cloud business, making for a powerful option for customers entering the space or upgrading their existing enterprise cloud subscriptions.
Citi analyst Ronald Josey wrote in an investor note Monday that Google's antitrust trial results and cloud offerings will only help it continue to grow.
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"We believe the pace of Google’s product velocity is ramping aided in part by Judge Mehta’s ruling as it provides more clear operational guidelines for Google," Josey wrote.
"More specifically, we believe Gemini’s tools, capabilities, integration (across Google’s products), and adoption continues to expand across Google’s product halo and Google’s size and scale give it an inherent advantage (15 products with 500 [million monthly active users])."
Google however also faces increasing competition in the search space from AI upstarts including OpenAI, Anthropic, and Perplexity.
During Google's trial, Apple SVP of Services Eddy Cue testified that Apple had seen searches in its Safari browser decline for the first time in April. Google, however, later pushed back on the statement saying that the company is seeing growth in other areas.
Google isn't out of the regulatory woods yet, either. The company still has to contend with its ongoing online advertising antitrust lawsuit. And according to Bloomberg, the Federal Trade Commission is probing Google and Amazon's ad business practices.
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X/Twitter at @DanielHowley.
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