TLDR
- Google ordered to pay $425M in a privacy class action lawsuit.
- Jury found Google guilty on two of three charges.
- Stock down 1.5% to $227.58 despite strong long-term returns.
- Google plans to appeal, citing product misunderstanding.
- Broader financials remain strong with $371.4B revenue and $115.6B net income.
Alphabet Inc. (NASDAQ: GOOG) stock traded at $227.58, down 1.52% in morning trading on September 4, 2025, as the company faced a significant legal setback.
A federal jury ordered Google to pay $425 million in damages after a class action lawsuit alleged the company collected user data even when individuals opted out of tracking.
The class action, filed in 2020, accused Google of accessing mobile device data through third-party apps such as Uber, Venmo, and Instagram despite users disabling Web & App Activity settings. While plaintiffs had initially sought more than $31 billion in damages, the jury’s decision concluded with Google being found liable on two of three charges. No punitive damages were awarded.
Google’s Response and Legal Context
A Google spokesperson said the ruling misunderstood how its services function, stressing that businesses using Google Analytics still collect traffic data, but the data is anonymized and does not identify individual users. Google reiterated its commitment to user privacy and confirmed plans to appeal the ruling.
This lawsuit follows earlier penalties for privacy issues. In early 2025, Google paid nearly $1.4 billion to Texas for alleged violations of state privacy laws. The class action is separate from ongoing antitrust cases. In a parallel ruling this week, regulators allowed Google to keep its Chrome browser and Android operating system but required it to share certain search data with rivals.
Financial Highlights and Market Position
Despite the latest setback, Alphabet’s fundamentals remain robust. As of September 3, 2025, the company’s market cap stood at $2.56 trillion, supported by $95.15 billion in cash and a modest debt-to-equity ratio of 11.48%.
For the trailing twelve months, Alphabet reported $371.4 billion in revenue and $115.57 billion in net income, reflecting a 31.12% profit margin. Diluted EPS came in at $9.38. The company maintains strong returns with a 34.83% return on equity and 16.79% return on assets. Levered free cash flow reached $49.79 billion.
Valuation metrics show Alphabet trading at a forward P/E ratio of 21.93 and a PEG ratio of 1.65, suggesting solid growth prospects relative to earnings.
Stock Performance Overview
Alphabet’s stock has been a strong performer despite recent volatility. Year-to-date returns are up 19.52%, while one-year gains stand at 44.59%, well above the S&P 500’s 17.08% return. Over a five-year horizon, Alphabet delivered 187.16%, more than double the benchmark’s 88.59%.
The latest ruling may weigh on near-term sentiment, but Alphabet’s scale, profitability, and balance sheet strength continue to underpin investor confidence. Analysts suggest that while regulatory risks remain a persistent challenge, the company’s diversified revenue base and investments in AI and cloud computing support long-term growth.
