A federal judge rejected the Justice Department's request to force Alphabet to divest its ad exchange, Chrome, Android, and AdTech assets, effectively preserving Google Advertising. Despite this legal victory, Alphabet's stock has continued a downtrend since May, leading investors to question whether the ruling is sufficient to reverse recent performance or if other factors are driving the price action. Google Advertising remains the cornerstone of Alphabet's financial health, accounting for 68% of revenue in the second quarter of 2026. This segment has historically driven the company's massive free cash flow generation, which rose to $53 billion annually as of Q2 2026, even after capital expenditures reached $132 billion over the trailing 12 months. The ad business is crucial for funding Alphabet's heavy investments in AI and other growth initiatives. While investors are increasingly focused on the growth potential of Google Cloud, which contributed 21% of revenue, and future contributions from Waymo, the slow decline in reliance on advertising provides a buffer during this transition. Analysts suggest that avoiding a rapid loss of ad revenue is critical for maintaining positive free cash flow, making the antitrust ruling a significant, albeit underappreciated, positive factor for shareholders.