A federal judge declined to prohibit Alphabet from paying Apple for exclusive search placement on iOS devices, preserving the $20 billion revenue stream. Apple’s stock has declined 4% this year, making it the second-worst performing among the “Magnificent Seven.” The recent antitrust ruling benefited both companies, but Apple’s lack of innovation remains a concern.

The U.S. Department of Justice filed antitrust lawsuits against Alphabet for monopolizing search advertising and adtech software markets. The judge rejected severe remedies proposed by the DOJ, allowing Alphabet to continue paying Apple for search distribution. This benefits both companies financially, but Apple’s lack of groundbreaking products in the past eight years raises concerns.

Analysts have adjusted Apple’s target price to $237 per share, reflecting a 4% downside from the current price of $240. Apple’s PEG ratio of 3.6 indicates an expensive valuation compared to other tech giants like Alphabet, Amazon, and Microsoft. Despite the recent antitrust ruling, Apple’s stock remains overvalued due to its lack of innovation.

Investors should consider the Motley Fool’s list of 10 best stocks, which does not include Apple. The list has historically outperformed the S&P 500, offering potential for significant returns. Apple’s stagnant innovation, high valuation, and exclusion from the list raise concerns about its investment potential.

Read more at Nasdaq: Apple Stock Investors Just Got Great News. Is It Time to Buy?