Alphabet
’s
GOOGL
division Google’s decade-long multi-billion dollar battle with
Oracle
ORCL
finally comes to an end with the U.S. Supreme Court’s 6-2 decision, which has made it the winner.
Notably, the verdict of the U.S. Supreme Court has overturned a lower court’s ruling in the case, which was filed in 2010 by Oracle against Google over copyright infringement related to the use of Java API code in the Android operating system (OS).
Earlier, the lower court announced its verdict in favor of Oracle. But now the Supreme Court’s verdict considers copying some Oracle Java API code to be the fair use done by Google.
We note that the latest verdict marks Google’s much-awaited victory. This is likely to instill investor optimism in the stock further.
Following the release of this news, Alphabet’s share price rose 4.2%.
Further, Alphabet has returned 87.6% over a year compared with the
industry
’s rally of 83.5%.
Google to Benefit
In the latest verdict, companies like Mozilla, Microsoft, and International Business Machines reportedly supported Google. Further, The Computer & Communications Industry Association considers the Supreme Court’s ruling to be positive for innovation.
The latest victory remains crucial for Google. Moreover, this remains important for the enhancements in the most popular OS— Android.
Notably, Android is the most widely adopted OS across the world.
Further, the Supreme Court’s decision bodes well for the existing as well as future developers as it favors the use of Java APIs, which are pre-written directions that prevent developers from writing the codes from scratch.
Wrapping Up
Google, which continues to grapple with lawsuits, will be able to strengthen its stance in the market on the heels of its latest win.
Moreover, Google’s strong initiatives toward innovating Android in a bid to deliver a seamless user experience are likely to aid its dominance in the OS space. This, in turn, will contribute well to the company’s financial performance.
Further, we believe that its dominant position in the search engine as well as self-driving space will continue benefiting its top-line growth.
Additionally, strengthening position in the booming cloud market remains noteworthy.
Zacks Rank & Other Stocks to Consider
Currently, Alphabet carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader technology sector are
Mettler-Toledo International
MTD
and
Analog Devices
ADI
. Both the stocks carry a Zacks Rank #2. You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rates for Mettler-Toledo, Analog Devices and Agilent Technologies are currently pegged at 13.79% and 12.35%, respectively.
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