Alphabet hits $3 trillion market cap after judge rejects DOJ penalties

Google’s parent Alphabet has become the fourth company to surpass a $3 trillion market capitalisation, closing Monday at $3.05 trillion after its shares rose 4.5%, reported Bloomberg. It joins Apple, Microsoft, and Nvidia in crossing the milestone.

As per the reports, the rally was fueled in part by a recent antitrust ruling that came in lighter than shareholders had expected. A U.S. district court had earlier found that Google held an illegal monopoly in search and related advertising. The Department of Justice sought penalties, including forcing Google to divest its Chrome browser. But Judge Amit Mehta rejected the most severe measures, a decision that sent Alphabet shares to record highs.

So far this year, the company’s stock has gained more than 30%, outperforming the Nasdaq’s 15% rise. The $3 trillion milestone comes two decades after Google’s initial public offering and just over a decade since the creation of the company as its holding company.

Since 2019, the company has been led by CEO Sundar Pichai, who succeeded co-founder Larry Page. The company faces mounting challenges, including increased regulatory scrutiny in the U.S. and Europe and intensifying competition in artificial intelligence. The company is betting heavily on Gemini, its suite of AI models, as rivals such as OpenAI and Perplexity gain ground.