On Wednesday, regulators said Alphabet (GOOGL) can hold onto its popular Chrome web browser and its Android smartphone software.

Chrome holds nearly 70% of the web browser market. You more than likely use Chrome as your browser.

What may surprise you is the Android market share. Android is not as popular in the U.S. as Apple’s iPhone, holding a 41% market share to Apple’s 57%. But globally, it dominates at more than 70%.

The case came about because regulators think Google’s dominance in these spaces makes it a monopoly. Google’s lawyers clearly proved otherwise.

Google can’t rest easy… Another case challenging its ad services – the company’s most important business, making up 75% of its $350 billion revenue in 2024 – is coming up later this year.

But investors clearly saw the ruling as a dark cloud parting above the company’s head. The stock rose more than 10% from Tuesday’s close, its best single-day performance since the announcement of the tariff pause on April 9.

It’s a good time to reflect on what an effective business Google really is…
Among the Magnificent 7, it may be third in revenue behind Amazon (AMZN) ($637 billion) and Apple (AAPL) ($391 billion). But in terms of profitability, Google keeps $100 billion of its revenue… the highest of the Mag 7.

At the same time, it’s priced the most cheaply of this group, at a price-to-earnings ratio (P/E) of 24. The next cheapest is Meta Platforms (META), at almost 27.

Those are just the textbook comparisons. TradeSmith’s tools give us an even deeper look at why Google is a great stock.

Take Jason Bodner’s Quantum Score. As regular readers will know, Jason used to work on Wall Street placing multi-million-dollar – and even billion-dollar – trades for wealthy investors.

After quitting Wall Street, he developed a system that scans the market for the best stocks by fundamental and technical measures. Not only this, the system also factors in the likely presence of institutional buying pressure.

Right now, it shows us that Google is fundamentally superior and technically strong with a top-tier score of 95.1. That’s the highest Quantum Score of the Magnificent 7… despite having the lowest valuation:

Google is an enormously profitable company. It just got a big win for helping it keep parts of its core business intact. And there’s an upcoming catalyst – the second antitrust case involving its ad business – that it’s walking into in a position of strength.

If you’re going to buy any Mag 7 stock, Google is probably the best one.

— Michael Salvatore

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Source: TradeSmith