Apple Inc (NASDAQ:AAPL, ETR:APC) has scored a major victory as a federal court decision cleared the way for its lucrative search partnership with Google to continue, according to Wedbush analysts.
The firm called the outcome “a big win for Apple and Google” after Judge Amit Mehta ruled that Google will not be barred from paying distribution partners for preloading or placing Google Search, Chrome, or its generative AI products.
Analysts said the ruling removes a significant overhang tied to fears the Department of Justice could force an end to the $20 billion search deal or mandate a breakup of Chrome.
“This is a monster win for Cupertino,” Wedbush wrote, adding that it also represents a “home run ruling” for Google.
While Google is barred from entering exclusive deals, the decision allows Apple to maintain its search arrangement and potentially expand collaboration in artificial intelligence.
“We now see a green light for a bigger Gemini AI partnership between Apple and Google with this DOJ case now in the rear view mirror,” the analysts wrote.
Wedbush estimated the legal uncertainty had placed a $25 per share drag on Apple’s valuation and said the ruling will be viewed as “very bullish” by investors.
The firm reiterated its ‘Outperform’ rating on Apple and kept its $270 price target.
Shares of Apple traded up 3.3% at $237 on Wednesday afternoon.