Alphabet Stock Surges as Legal Clarity Boosts Investor Confidence

Alphabet Inc. shares rallied decisively after a federal court ruling eliminated existential regulatory risks, removing the threat of forced structural changes to its Google ecosystem. The verdict catalyzed a double-digit percentage gain, extending a 54% four-month ascent.

Second-quarter earnings underscored the tech giant's fundamental strength, with $96.4 billion revenue representing 14% annual growth. Core advertising drove performance—Search delivered over $54 billion while YouTube's ad acceleration continued. Cloud revenue surged 32% as enterprise AI infrastructure spending buoyed the segment.

Management's $85 billion AI/data center capex plan demonstrates aggressive reinvestment capacity without compromising operating income. The market now prices Alphabet as both a cash-generating incumbent and AI infrastructure leader, with regulatory overhangs diminished.