NEW YORK, Jan 28, 2026, 18:41 (ET) — After-hours
- Alphabet’s Class C shares (GOOG) gained roughly 0.4% in after-hours trading.
- Google has reached a $135 million settlement in a lawsuit about Android data transfers, though the deal still requires court approval.
- EU regulators launched fresh Digital Markets Act proceedings targeting access to Google search data and its Gemini models.
Alphabet’s non-voting Class C shares (GOOG) ticked up in after-hours on Wednesday, finishing roughly 0.4% higher at $336.28.
Alphabet’s stock faces a jam-packed period for megacap tech as investors wrestle with distinguishing product gains from growing AI costs and ongoing regulatory pressure. Legal and policy news rarely sparks daily moves for the company, yet they often influence the mood ahead of earnings.
Alphabet has pulled ahead of several large-cap rivals late in the AI cycle, with its stock climbing roughly 29% over the last three months of 2025, Reuters reports. The gains came after enthusiasm grew around Google’s Gemini 3 model and a deal to power Apple’s redesigned Siri. “Alphabet has the upper hand in the AI race … tough to penetrate,” said David Wagner, head of equities at Aptus Capital Advisors, though he cautioned that first-mover advantages can erode. 1
Google has agreed to a $135 million settlement in a proposed class action in San Jose, California, over allegations that Android collected users’ cellular data without permission. The deal, which still requires a judge’s approval, would force Google to obtain consent during phone setup and simplify the process to stop data transfers. Plaintiffs’ lawyer Glen Summers described it as the largest payout he’s seen in a “conversion” case—where someone is accused of wrongly taking another’s property. 2
Europe’s Commission launched two Digital Markets Act (DMA) specification proceedings, targeting how “gatekeeper” platforms must comply. The focus: access to Google search data and features linked to its Gemini AI models. Clare Kelly, Google’s senior competition counsel, argued, “Android is open by design, and we’re already licensing Search data to competitors.” She also cautioned that imposing more rules might undermine privacy, security, and innovation. 3
Alphabet’s Waymo announced on Wednesday it plans to roll out its fully driverless ride-hailing service in London by Q4 2026. The move comes as rivals like Tesla and others gear up for their own London launches. 4
The UK’s Competition and Markets Authority has laid out proposals to curb Google’s dominance in search, including giving publishers options to restrict how their content appears in AI-generated “Overviews.” The consultation period runs until Feb. 25. According to the Financial Times, breaches of new digital market conduct rules could lead to fines reaching 10% of a company’s global turnover. 5
The market showed a mixed picture after the Federal Reserve paused rates at 3.5%–3.75% and offered scant clues on when cuts could begin again. “Whether you were bullish or bearish … you walked away feeling about the same,” said Michael James, an equity sales trader at Rosenblatt Securities. The Nasdaq edged up slightly while the S&P 500 remained flat. 6
The downside for GOOG is clear enough: a judge might reject the settlement terms, or regulators could clamp down harder on search and Android. That would complicate product tweaks and hike costs—just as investors want clearer returns from AI investments.
Alphabet is set to release its quarterly earnings next, with a report covering the fourth quarter and full year of 2025 due on Feb. 4. Investors will focus on updates around ad demand, the growth and profitability of Google Cloud, and any fallout from ongoing litigation or Europe’s DMA compliance efforts. 7
