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Morgan Stanley Calls DOJ Ruling a “Near Best-Case Scenario” for Apple—Shares Jump
Date: September 3, 2025
Apple shares surged in premarket trading today, climbing approximately 3.9% after a U.S. District Judge delivered a ruling in the ongoing Google antitrust case that analysts say strongly favors the iPhone maker.
What Morgan Stanley Said
In its analyst note, Morgan Stanley described the ruling as a “near best-case scenario” for Apple, noting key outcomes:
• Apple retains the ability to collect traffic acquisition payments (TAC) from Google—and potentially other search providers—even though Google can no longer maintain exclusive default status for Search, Chrome, Assistant, and Gemini.
• These TAC payments represent a massive annual revenue stream—estimated at $25 billion+ with over 95% margins.
• Apple now has the strategic flexibility to renegotiate these search deals annually, and potentially introduce a search choice screen to its users.
• Morgan Stanley concluded the ruling is a “clearing event for the stock” and likely to have a negligible to possibly positive financial impact.
• Additionally, the firm noted that Apple is “actively looking at” adding a GenAI product as a search option in Safari within the coming year.
Broader Market Implications
Bank of America echoed the optimistic tone, calling the ruling a “win for Apple” and raising its price objective to $260, citing renewed confidence in Apple’s Services growth.
Moreover, the ruling preserves Apple’s critical default search revenue stream while granting it greater negotiating power—especially important given increasing regulatory scrutiny and slowed hardware growth.
Final Take
In essence, Morgan Stanley views the DOJ ruling as a strongly favorable development for Apple—preserving its key revenue model, improving its strategic flexibility, and potentially accelerating its foray into AI-enhanced services. With upbeat commentary from analysts and a refreshed bullish outlook from peers like Bank of America, today marks a pivotal moment for Apple’s Services-driven future.
Attached is a news article regarding Apple saying Morgan Stanley share price has risen
Article written and configured by Christopher Stanley
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