The US Supreme Court ruled on Monday in Alphabet(GOOGL) in a copyright dispute with Oracle (ORCL) involving Android software, in a decision that may have broader implications for technology developers. Google’s stock has risen to a buying zone.
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The Supreme Court ruled 6 to 2 in favor of Google in the long-term case. Android-based cell phones are used worldwide.
Google argued that Sun Microsystems, a Java software developer that was acquired by Oracle in 2010, had no problems with the development of its Android mobile operating system using Java APIs or application program interfaces.
In its decision, the Supreme Court said that Google’s copy of the API constituted “fair use of this material”. Google used the API to allow Java programmers to create Android applications.
The Silicon Valley software industry applauded the decision. Technology industry groups have said that Oracle’s claim of copyright infringement threatens to undermine the widely used practices involved in creating many types of software.
“After more than a decade of litigation, this decision is a victory for interoperability, copyright principles and the future of innovation,” said Matt Schruers, president of the Computer and Communications Industry Association, in a press release. “The high court’s decision that fair use extends to the functional principles of computer code means that companies can offer competing and interoperable products.”
Google Stock: Waymo CEO comes out
Alphabet faced the prospect of paying Oracle about $ 9 billion in damages and possible royalties.
Google shares jumped 4.2% to 2,218.96, an all-time high in the stock market today.
From the point of view of the weekly chart, GOOGL’s shares formed a flat base. This provided a new entry point of 2,145.24.
With the gain, GOOGL’s shares moved to a 5% buying zone that extends to 2,252.50, according to IBD MarketSmith’s analysis.
In addition, investors ignored the surprise departure of Waymo’s chief executive, John Krafcik, on Monday
Alphabet said on Friday that Krafcik, head of the autonomous vehicle unit since 2015, would be replaced by two co-CEOs – Tekedra Mawakana and Dmitri Dolgov. Mawakana had been Waymo’s chief operating officer, while Dolgov was Waymo’s chief technology officer.
Meanwhile, Google’s relative strength rating is only 68 out of 99, according to the IBD Stock Checkup. The best stocks tend to have an RS rating of 80 or better.
Waymo’s assessment is the key issue
A key issue for investors in GOOGL shares has been the assessment of the Waymo autonomous car project and other bets, such as Google’s Verily Life Sciences unit.
In early 2018, some analysts projected Waymo’s long-term valuation in the range of $ 75 billion to $ 125 billion. Expectations for autonomous vehicles, however, have been lowered.
In March 2020, Waymo raised $ 2.25 billion in financing from outside investors, including private equity firm Silver Lake, the Canada Pension Plan Investment Board and the investment arm Mubadala of Abu Dhabi.
Although Google did not disclose Waymo’s assessment in the funding round, the reports said it was only $ 30 billion at the time.
In addition, Google shares have an accumulation / distribution rating of B. This rating analyzes changes in the price and volume of a share in the past 13 trading weeks.
The rating, on a scale of A + to E, measures the institutional purchase and sale of a share. A + means strong institutional purchase; And it means heavy sales. Think of grade C as neutral.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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