Alphabet Inc. (NASDAQ: GOOG) Stock Rises Despite Mounting Legal Pressure

Shares of Alphabet Inc. (NASDAQ: GOOG) closed at $165.81 on May 2, gaining 1.86% for the day, even as the company faces intensifying legal scrutiny. A U.S. federal court has officially set September 22 as the start date for the Department of Justice's (DOJ) remedies trial, a high-stakes legal battle that could reshape Google’s powerful grip on the digital advertising market.

This follows a major decision by Judge Leonie Brinkema, who ruled that Google intentionally maintained monopoly power by unlawfully tying together its advertising server and exchange, effectively stifling fair competition between ad buyers and sellers.

Alphabet Faces Historic Antitrust Trial Over Ad Tech Dominance

The upcoming trial represents the most serious antitrust threat Google has faced since the Microsoft case over two decades ago. Judge Brinkema concluded that Google abused its market dominance by using restrictive contracts and tightly integrating its ad tech products to prevent fair competition.

The DOJ is now pursuing aggressive remedies, potentially forcing Google to divest key components of its ad technology stack. However, Alphabet argues these proposals go too far. “The DOJ’s additional remedies exceed what the court determined,” stated Lee-Anne Mulholland, Google’s Vice President.

Alphabet Confronts Mounting Pressure from Antitrust Rulings and AI Competition

This case adds to Alphabet’s growing list of legal challenges. In a separate ruling from August last year, a Washington D.C. court found that Google had also monopolized the internet search market. As the tech giant prepares to defend its advertising empire, it's simultaneously facing rising competition in AI-powered search rivals like OpenAI, Anthropic, and Perplexity are rapidly gaining traction and threatening Google's traditional dominance in search.

Despite Legal Headwinds, Alphabet’s Long-Term Performance Remains Strong

While Alphabet is navigating legal and competitive headwinds, its long-term stock performance remains impressive. Over the past three years, Alphabet stock has delivered a 42.2% return, comfortably beating the S&P 500’s 36.85% gain. Looking at a five-year horizon, the company’s stock has surged 152.3%, far outpacing the broader market’s 100.89% growth.

Stock Slips in 2025 Amid Legal Uncertainty

Despite strong historical returns, Alphabet stock has underperformed in 2025, sliding 12.83% year-to-date, compared to a 3.31% decline in the S&P 500. The looming antitrust remedies trial has investors on edge, and although Alphabet offers a modest 0.51% dividend yield, many remain cautious about potential structural changes to its profitable advertising business.

Investors will watch closely as the company heads into earnings season, with results expected between July 21–25 and the ex-dividend date set for June 9. The outcomes of the courtroom battles and whether regulators force a breakup of Google's ad tech unit could heavily influence Alphabet’s stock trajectory in the months ahead.