Breakfast News: GOOG Wins Antitrust Case

Breakfast News: GOOG Wins Antitrust Case

1. Alphabet to Keep Chrome and Android

Alphabet (GOOG -1.14%) rose 5% in pre-market trading, after a landmark antitrust case ruled against the forced divestiture of Chrome or Android. U.S. District Judge Amit Mehta barred exclusive contracts, and Alphabet has to share some of the data used for generating search results, but said the Department of Justice "overreached in seeking forced divestiture of these key assets."

• "Google is permitted to pay browser developers, like Apple (AAPL -0.43%)": Partner agreements are still allowed provided competing search engines are also offered, as the judge said prohibiting them would mean substantial financial harm to partners. Apple gained 3% in after-hours trading following the announcement.
• AI start-ups in a "better position to compete with Google than any traditional search company": Judge Mehta said the growing use of AI chatbots in preference to traditional searches helped fend off the possibility of tougher penalties.

2. Zscaler CEO Declares Q4 "Outstanding"

Hidden Gems recommendation Zscaler (ZS 0.74%) beat guidance in its fourth quarter, with a 21% rise in revenue year over year. Its Zero Trust Exchange cloud-based security platform blocks more than 150 million potential threats each day, as Annual Recurring Revenue (ARR) rose 22% to $3,015 million.

• "We recently delivered AI Guardrails for Public and Private apps": Speaking of growing demand, CEO Jay Chaudhry added "we are rapidly expanding our AI security portfolio to address the emerging risks of AI models."
• Zscaler scored 7.4 out of 10 in a recent Scoreboard video: For management – where a 10 is Warren Buffett, and a one is Homer Simpson – Fool contributing analyst Matt Frankel issued a nine, saying "co-founder Chaudhry ... still owns almost 18% of it. It's not just him, other executives have a quarter billion dollars of their wealth invested in Zscaler – and more, with all this stock-based comp they're getting! He's delivered incredible performance for investors, though, 800% total return since the 2018 IPO. So it's really hard to argue with his leadership."

3. Tech Earnings Today: ASAN, CRDO, FIG

On 'Hold' in Stock Advisor, work management software developer Asana (ASAN -2.09%) is due to post a Q2 update after the closing bell, following slowing revenue growth in its previous quarter. Analysts expect 7.7% year-over-year revenue growth.

• Stock up 293% in 12 months: Credo Technology Group (CRDO 2.15%) will report fiscal 2026 Q1 this afternoon, after record results in 2025 Q4 showed revenue up 180% year over year to $170 million. The high-speed network technologist expects $185 million to $195 million revenue this time, with more than $800 million in FY 2026.
• More than doubled since IPO: Figma (FIG 0.45%) reports after close, its first time since the stock popped 250% at IPO on July 31 – though it's fallen back since. It could prove a test for the software developer's sky-high valuation of over 200 times estimated full-year earnings.

4. Aldi Targets Low-Cost Retail

Discount private-label grocery chain Aldi plans to open more than 225 new stores across the U.S. this year to take advantage of the growing number of price-conscious shoppers seeking better deals. It would put it in third place with around 2,600 stores, behind Walmart (WMT -0.17%) and Kroger (KR 1.44%).

• "We literally can't open the stores fast enough": Dave Rinaldo, U.S. chief operating officer at the Germany-based company, had previously spoken of "tremendous opportunities for Aldi."
• Up 49% year to date: Dollar Tree (DLTR -0.89%) has been suffering from intensifying low-cost competition, though investors hope for long-term growth after the disposal of the Family Dollar business. This morning's Q2 results showed a 6.5% rise in same-store net sales, with FY net sales outlook raised to $19.3 billion to $19.5 billion.

5. Your Take

Let's say you get to spin off any part of a business from a company that you already have shares in, and that spin-off will be its own stock. But here's the deal – you have to sell the original stock and only stay invested in the newly separated business. What are you spinning off, and why? Debate with friends and family, or become a member to hear what your fellow Fools are saying.