Alphabet (GOOGL) - Get Alphabet Inc. Report shares rose on Monday after the Supreme Court, overturning a federal appeals court decision, ruled in its favor in a copyright dispute with fellow tech giant Oracle (ORCL) - Get Oracle Corporation Report.
The justices determined in a 6-2 vote that Google’s use of Oracle’s software code in creating the Android operating system didn’t violate federal copyright law.
The Supreme Court decision overturned a 2018 ruling against Alphabet's Google subsidiary from the U.S. Court of Appeals for the Federal Circuit in Washington.
Oracle, the Austin software giant, had sought more than $8 billion, and perhaps up to $30 billion, of damages from the Mountain View, Calif., search, advertising and cloud-technology titan, knowledgeable sources told Reuters.
Alphabet recently traded at $2,198, up 3.2%, and Oracle at $73.53, up 2.4%.
Oracle originally sued in 2010, alleging that Google copied 11,330 lines of its Java code. Google holds that it didn’t copy a computer program, using just parts of Java.
Meanwhile, on March 30, Stifel analyst Scott Devitt upgraded Alphabet to buy from hold and lifted his price target to $2,350 from $2,025.
"The resilience and speedy recovery of Alphabet's digital advertising businesses through the course of the pandemic has impressed us," he said.
"The bounce in advertising-dollar flows have followed online consumer engagement, a quick return and redistribution of advertiser appetite, and digital transaction proliferation."
On the Oracle front, last month it reported fiscal third-quarter adjusted earnings that beat analyst estimates and revenue that met them. Adjusted EPS totaled $1.16 vs. $1.11 expected for the quarter ending in February.