Apple’s stock price surged after a federal court ruling in Google’s antitrust case secured the continuation of its lucrative search engine deal. The decision allows Google to keep paying Apple to remain the default search engine on Safari, a deal worth about $20 billion annually.
Investors reacted quickly, sending Apple’s stock higher in both after-hours and pre-market trading. This confidence highlights how vital the agreement is to Apple’s Services revenue.
Market Reaction
On Tuesday, Apple’s shares closed at $229.72. Following the ruling, the price spiked to $239.13 in post-market trading, nearly a $10 jump within 30 minutes. Pre-market trading kept the stock above $238, more than 3% higher than Tuesday’s close. By Wednesday’s opening, shares dipped slightly to $237.20 but remained well above the previous day’s levels.
The boost fueled speculation that Apple might hit a new yearly high. Its 2025 record currently sits at $247.10.
Why the Deal Matters
The ruling secures a consistent revenue stream for Apple. Even though Apple generates hundreds of billions annually, losing $20 billion from Google would leave a noticeable gap. While Apple could eventually recover the loss, the stability provided by the deal makes it highly valuable.
For Google, the arrangement is less critical, as users often choose its search engine regardless of defaults. Still, the agreement strengthens its dominance in mobile search.
Future Outlook
Despite speculation that Apple might build its own search engine, the continuation of the deal lessens that possibility. With new priorities like AI integrations—including ChatGPT—Apple seems less inclined to compete directly with Google in search.
