Google's Search Dominance Threatened as Apple Explores AI Alternatives

Alphabet Shares Take $120 Billion Blow as Search Warnings Blare

For more than a year, Alphabet Inc. shareholders have fretted over long-term risks posed by artificial intelligence to the company's money-printing search business. This week the threat became much more immediate. Court testimony from an Apple Inc. executive on Wednesday revealed that the iPhone maker is exploring adding AI services to its web browser for which Google now pays an estimated $20 billion a year to be the default search engine. Potentially more worrisome: searches on Apple's Safari fell for the first time last month, according to Eddy Cue, Apple's senior vice president of services.

Alphabet faces 'watershed moment' if AI erodes search dominance, analysts say

Wall Street's more bearish investors believe that Alphabet could be facing an uphill battle of disruption. Shares of Alphabet sank 7% on Wednesday after Eddy Cue, senior vice president of services at Apple, said Apple was "actively looking at" reshaping its Safari web browser to focus on search functions powered by artificial intelligence, according to a report by Bloomberg . GOOGL YTD mountain GOOGL YTD chart Cue's remarks came in testimony in the Justice Department's lawsuit against Apple. The executive added that he believes AI search engines such as OpenAI will eventually replace their historic counterparts, such as Google. In response, many analysts across Wall Street took a "wait-and-see" approach, with some saying the stock decline was overblown. On Thursday, Alphabet shares rebounded as much as 2.5%. More optimistic analysts pointed to Alphabet's own AI innovations, led by Gemini, a strong suite of products, the difference between search queries asked in AI versus traditional search questions and the Apple executive's own self-interest in his Wednesday remarks. But other researchers -- albeit a minority -- warned that cracks are showing in Alphabet's armor. Wells Fargo's Ken Gawrelski called this a "watershed moment," while Melius Research's Ben Reitzes begged Alphabet to "make a bet already and disrupt yourself before it's too late." Here's how some of Wall Street's more bearish analysts answered the Apple executive's remarks. Wells Fargo "View Apple's remarks indicating search volume declined for the first time in April as a watershed moment. Believe consumer behavior is changing and GOOGL must act to accelerate adoption of AI-powered search to maintain market leadership." Melius Research "The comments from Apple not only back our below consensus long-term estimates for Google Search -- but also back downside in 2025. It may be time for Alphabet to make a real bet -- instead of just experimenting all the time (Deep Research, Notebook LLM, AI mode, etc.), really confusing the heck out of people ... Self-inflicted business model disruptions in the tech elite aren't unheard of ... Alphabet -- make a bet already and disrupt yourself before it's too late." Citizens "While we acknowledge the value of Google's distribution as it has seven services with 2B+ MAU, the superior search product offered by ChatGPT is taking share of queries. Additionally, while the valuation is increasingly compelling and Google has substantial cost levers to maintain profitability growth if search faces headwinds, we continue to view search estimates as having downside risk, and maintain our Market Perform rating given our view that the risk/reward in shares is currently balanced." MoffettNathanson Research "While the market may have been waiting for a day like today where people's worst fears on search are confirmed, we hate to say that Google investors are out of the woods. Yes, the stock is cheap ... and yes, other divisions are growing nicely ... and yes, search may be more resilient than people think due to commercial search share and pricing power. Our experience covering other sectors that have been disrupted tell us that this is a long bumpy journey that ultimately becomes smoother when today's worries are long in a mirror of rear view. Unfortunately, we are just starting the ride." -- CNBC's Michael Bloom contributed to this report.

Alphabet's share price plunges on traffic drop testimony

Shares in Google parent Alphabet plunged more than 7% on Wednesday after an Apple executive told a federal court that the search engine's traffic fell on Apple products last month. Eddy Cue, Apple's senior vice president of services, testified at an antitrust trial in Washington that Google search volume was losing traffic to AI alternatives such as ChatGPT or Perplexity, according to US media reports. "That has never happened in 20 years," legal news outlet MLex quoted him as saying. Cue was giving testimony in a trial in which US Judge Amit Mehta will determine how Google must address his landmark ruling last year that it operates an illegal monopoly in online search. The Apple executive's remarks saw Google's market capitalization wiped of $140 billion since the close of trading on Wall Street on Tuesday. The marathon court case has revealed that Google pays Apple tens of billions of dollars every year in a revenue sharing agreement in which Google's search engine is set as the default on Apple's Safari browser. Markets were also rattled by Cue's comment that "over the coming year we will add other (AI) choices to the search engine choice in the browser, because I think those products are getting better and better," he said, according to MLex. The testimony backed Google's argument that the emergence of AI has begun a new era in how people get information online, with its search engine now facing new rivalry from AI chatbots. US government attorneys have urged Judge Mehta to force Google to sell off its Chrome browser, arguing that artificial intelligence will actually only ramp up the tech giant's online search dominance. Another option is that the judge, in a decision expected in August, will order an end to the payouts from Google to Apple and others for the default position on devices. Cue told the court this would have a significant impact on Apple's ability to invest in new products and services.

An Apple executive sparked a Google stock selloff. Don't panic, analyst says

Cue attributed the drop -- which Google parent Alphabet disputes -- to a growing user shift toward AI tools like ChatGPT, Perplexity, and Claude, and suggested Apple may eventually integrate one of them directly into Safari. Investors, already nervous about AI's disruption of search, didn't take the news lightly and wiped roughly $155 billion off Alphabet's market cap. Cue made the remarks while testifying during the Department of Justice's ongoing antitrust trial against Google. This trial centers on whether Google has maintained an illegal monopoly over search by paying billions to be the default engine on browsers like Safari. Cue appeared as a witness for the DOJ, and his comments about declining Safari search volume and potential AI alternatives were part of that testimony. But according to analysts at Jeffries, the selloff may be overblown. In a note released late Wednesday, titled "Don't Rush to Count Out Google Search," analysts from the investment bank argued that Safari's shrinking share is a limited threat. While Apple's browser holds 17% of global market share, Google Chrome commands 66%, giving Alphabet a much larger footprint regardless of what Apple does. Meanwhile, daily active users of the Google app on iOS have climbed 15% year over year, undercutting fears of a broader user exodus. Importantly, Google's search business remains strong: Revenue grew 10% in Q1, even with tough comps and rising competition. Google's AI Overviews -- a feature that condenses information for search results using generative AI -- are also monetized at roughly the same rate as traditional search, Jeffries noted, suggesting Alphabet is adapting its core product without sacrificing profitability. The analysts argued Google should be able to improve these economics over time, too. As to valuation, Alphabet now trades at just 9.7 times forward EBITDA, the analysts pointed out -- barely above its 10-year trough and well below long-term averages. The stock is down 20% so far this year, underperforming the Nasdaq's 6% decline. In short, while Apple may be exploring new partners, Google's search dominance is far from over. "We believe the market reaction is excessive," Jeffries conclued. "Reiterate Buy." While the memo represents just one group of analysts, Alphabet shares already look to be recovering. The stock was up more than 2% before Thursday's market open.

Google shares plunge after Apple executive's court testimony

Washington (AFP) - Shares in Google parent Alphabet plunged more than eight percent on Wednesday after Apple executive Eddy Cue testified in federal court that Google's search traffic on Apple devices declined last month for the first time in over two decades. Cue, Apple's senior vice president of services, told the Washington antitrust trial that Google was losing ground to AI alternatives like ChatGPT and Perplexity. His revelation that this decline "has never happened in 22 years" sent shockwaves through Wall Street, wiping more than $170 billion from Google's market capitalization in a single trading session. The testimony came during a pivotal trial where District Judge Amit Mehta will determine remedies for Google's previously ruled illegal search monopoly. The case, ongoing since 2020, has exposed Google's practice of paying Apple tens of billions dollars annually to remain the default search engine on Safari browsers and Apple smartphones. Investors were further unsettled when Cue suggested Apple might soon offer AI alternatives as default search options on its devices, heightening concerns that Google's advertising revenue could face serious threats from AI competitors. With the three-week trial set to conclude Friday, government attorneys are pushing Judge Mehta to order Google to divest its Chrome browser. They argue that AI technologies will only strengthen Google's dominance by leveraging its vast data resources across products like Maps, YouTube, and Chrome to stifle competition. However, Cue's testimony bolstered Google's defense that AI is already disrupting its search dominance, with chatbots now posing legitimate threats to its business model. 'Losing sleep' When Judge Mehta issues his ruling in August, he could end Google's default search agreements with Apple and others -- a prospect that Cue told the court he was "losing sleep" over, with potential revenue losses impacting Apple's product development and operating system investment. Alternatively, Mehta might order Google to share its search data with competitors, which CEO Sundar Pichai warned would effectively amount to a "de facto divestiture of search." As a counter offer, Google proposes a more limited remedy that would allow it to continue paying for default placement of its search engine, but with an annual renegotiations and greater freedom for smartphone manufacturers to choose which Google apps to install on their devices. The Google case represents just one of five major tech antitrust actions currently pursued by the US government, with Meta facing similar scrutiny in the same courthouse. Google recently lost a separate case regarding its ad technology business and may face additional divestitures, while Apple and Amazon are also expected to confront antitrust challenges in US courts.

Alphabet's share price plunges on traffic drop testimony

Washington (AFP) - Shares in Google parent Alphabet plunged more than seven percent on Wednesday after an Apple executive told a federal court that the search engine's traffic fell on Apple products last month. Eddy Cue, Apple's senior vice president of services, testified at an antitrust trial in Washington that Google search volume was losing traffic to AI alternatives such as ChatGPT or Perplexity, according to US media reports. "That has never happened in 20 years," legal news outlet MLex quoted him as saying. Cue was giving testimony in a trial in which US Judge Amit Mehta will determine how Google must address his landmark ruling last year that it operates an illegal monopoly in online search. The Apple executive's remarks saw Google's market capitalization wiped of $140 billion since the close of trading on Wall Street on Tuesday. The marathon court case has revealed that Google pays Apple tens of billions of dollars every year in a revenue sharing agreement in which Google's search engine is set as the default on Apple's Safari browser. Markets were also rattled by Cue's comment that "over the coming year we will add other (AI) choices to the search engine choice in the browser, because I think those products are getting better and better," he said, according to MLex. The testimony backed Google's argument that the emergence of AI has begun a new era in how people get information online, with its search engine now facing new rivalry from AI chatbots. US government attorneys have urged Judge Mehta to force Google to sell off its Chrome browser, arguing that artificial intelligence will actually only ramp up the tech giant's online search dominance. Another option is that the judge, in a decision expected in August, will order an end to the payouts from Google to Apple and others for the default position on devices. Cue told the court this would have a significant impact on Apple's ability to invest in new products and services.

Google stock falls as Apple considers adding AI search engines

Google's stock took a hit Wednesday after an Apple executive testified in court that the iPhone maker is considering adding artificial intelligence (AI) search engines to its web browser as search traffic reportedly declines. The search giant saw its share price tumble 9 percent when Apple senior vice president of services Eddie Cue took the stand. Its stock recovered slightly Thursday, rising nearly 2 percent. Cue told the court Wednesday that search traffic on Safari fell for the first time last month due to AI, Bloomberg reported. He also said Apple will likely add AI search engines, such as OpenAI, Anthropic and Perplexity, to the browser. "We will add them to the list -- they probably won't be the default," he said, according to Bloomberg. "Prior to AI, my feeling around this was, none of the others were valid choices," Cue added. "I think today there is much greater potential because there are new entrants attacking the problem in a different way." However, Google pushed back on the claim that search traffic was falling, arguing that the number of queries has continued to grow overall, including from Apple's devices and platforms. "More generally, as we enhance Search with new features, people are seeing that Google Search is more useful for more of their queries -- and they're accessing it for new things and in new ways, whether from browsers or the Google app, using their voice or Google Lens," the company said in a statement. Cue's testimony comes as part of a multiweek hearing to determine remedies after Google was found to have an illegal monopoly over online search last August. At the heart of the case are a series of exclusive distribution agreements that Google struck with device manufacturers and browser developers, including Apple, to make its search engine the default. The court found the agreements to be unlawful, and the Department of Justice (DOJ) is seeking to block them going forward, in addition to pushing for a breakup of Google and its Chrome browser.

Why Google Parent Alphabet's Stock Is Tumbling Wednesday

Kara Greenberg is a senior news editor for Investopedia, where she does work coordinating, writing, assigning, and publishing multiple daily and weekly newsletters. Prior to joining Investopedia, Kara was a researcher and editor at The Wire. Earlier in her career, she worked in financial compliance and due diligence at Loomis, Sayles & Company, and The Bank of New York Mellon. Shares of Google parent Alphabet (GOOGL) plunged Wednesday after an Apple (AAPL) executive reportedly said the iPhone maker is looking to add AI-powered search options to its Safari browser, and suggested they could eventually replace standard search engines like Google's. Shares of Alphabet were down 9% in recent trading. They've lost about a fifth of their value since the start of the year. Apple's senior vice president of services, Eddy Cue, said Wednesday during testimony in the U.S. Department of Justice's lawsuit against Alphabet that searches on Apple's Safari fell last month for the first time, and attributed the drop to rising AI use, Bloomberg reported. Cue said Apple has had discussions with Perplexity AI, as it looks to add AI search options to its Safari browser, with expectations their use could overtake standard search engines like Google's, the report said. Apple has reportedly held talks with Anthropic and ChatGPT maker OpenAI as well. Such a shift could also hit Apple's revenue -- something Cue said he's "lost a lot of sleep thinking about." Google pays an estimated $20 billion a year to make its search engine the default option on Safari, and Apple makes a cut of Google's ad revenue from searches through the browser. Shares of Apple slid about 2% in recent trading.

Why Analysts Are Staying Bullish on Google After Search Worries Sparked Sell-Off

Google parent Alphabet (GOOGL) lost about $150 billion in market capitalization Wednesday amid worries it could lose ground to AI-powered search options. Morgan Stanley says it's an opportunity to buy the stock. "GOOGL sentiment has (again) troughed due to AI-disruption fears," Morgan Stanley said, referencing an Apple (AAPL) executive's comments that the iPhone maker is looking to add AI-powered search options to its Safari browser, and suggested they could eventually replace Google, which is currently Safari's default search engine. However, Morgan Stanley argued that potential threats from AI search providers like OpenAI, Meta, and Perplexity "don't yet have large enough user bases or compelling enough products," to drive customers away from Google. Shares of Alphabet were up 2% close to $155 in recent trading Thursday, after plunging 7% a day earlier. Morgan Stanley maintained its price target of $185, and said it's "time to buy" the stock. Jefferies analysts noted that Chrome holds a 66% browser share compared to Safari's 17%. Google has also made its own progress in AI, with AI Overviews in Search reaching 1.5 billion monthly active users. "While we agree there are emerging alternatives to Google Search, GOOGL is not standing still," the analysts said. Jefferies reiterated its $200 target, calling yesterday's sell-off "overdone." JPMorgan and Citi affirmed their targets of $195 and $200, respectively. Still, one serious risk to Google's search dominance is antitrust enforcement. Last August, a federal judge agreed with Justice Department prosecutors that Google operated an illegal monopoly in the online search market. The Apple executive's comments were part of testimony in a court proceeding Wednesday meant to find a remedy to that monopoly.

Google-parent Alphabet stock price crashes, market cap wiped of whopping $140 billion

Alphabet share price fell on Wednesday as an Apple executive claimed that Google search volume was losing traffic to AI alternatives such as ChatGPT or Perplexity.Google parent Alphabet shares plunged more than seven per cent on Wednesday after an Apple executive told a federal court that the search engine's traffic fell on Apple products last month, as per a report. Eddy Cue, Apple's senior vice president of services, testified at an antitrust trial in Washington that Google search volume was losing traffic to AI alternatives such as ChatGPT or Perplexity, according to US media reports. "That has never happened in 20 years," legal news outlet MLex quoted him as saying. Cue was giving testimony in a trial in which US Judge Amit Mehta will determine how Google must address his landmark ruling last year that it operates an illegal monopoly in online search. The Apple executive's remarks saw Google's market capitalization wiped of $140 billion since the close of trading on Wall Street on Tuesday, AFP reported. The marathon court case has revealed that Google pays Apple tens of billions of dollars every year in a revenue sharing agreement in which Google's search engine is set as the default on Apple's Safari browser. Markets were also rattled by Cue's comment that "over the coming year we will add other (AI) choices to the search engine choice in the browser, because I think those products are getting better and better," he said, according to MLex. The testimony backed Google's argument that the emergence of AI has begun a new era in how people get information online, with its search engine now facing new rivalry from AI chatbots. US government attorneys have urged Judge Mehta to force Google to sell off its Chrome browser, arguing that artificial intelligence will actually only ramp up the tech giant's online search dominance. Another option is that the judge, in a decision expected in August, will order an end to the payouts from Google to Apple and others for the default position on devices. Cue told the court this would have a significant impact on Apple's ability to invest in new products and services. Q1. Which company owns Google? A1. Alphabet owns Google. Q2. What is full form of AI? A2. The full form of AI is Artificial Intelligence.

Alphabet's share price plunges on traffic drop testimony

Shares in Google parent Alphabet plunged more than seven percent on Wednesday after an Apple executive told a federal court that the search engine's traffic fell on Apple products last month. Cue told the court this would have a significant impact on Apple's ability to invest in new products and services. Shares in Google parent Alphabet plunged more than seven percent on Wednesday after an Apple executive told a federal court that the search engine's traffic fell on Apple products last month. Eddy Cue, Apple's senior vice president of services, testified at an antitrust trial in Washington that Google search volume was losing traffic to AI alternatives such as ChatGPT or Perplexity, according to US media reports. "That has never happened in 20 years," legal news outlet MLex quoted him as saying. Cue was giving testimony in a trial in which US Judge Amit Mehta will determine how Google must address his landmark ruling last year that it operates an illegal monopoly in online search. The Apple executive's remarks saw Google's market capitalization wiped of $140 billion since the close of trading on Wall Street on Tuesday. The marathon court case has revealed that Google pays Apple tens of billions of dollars every year in a revenue sharing agreement in which Google's search engine is set as the default on Apple's Safari browser. Markets were also rattled by Cue's comment that "over the coming year we will add other (AI) choices to the search engine choice in the browser, because I think those products are getting better and better," he said, according to MLex. The testimony backed Google's argument that the emergence of AI has begun a new era in how people get information online, with its search engine now facing new rivalry from AI chatbots. US government attorneys have urged Judge Mehta to force Google to sell off its Chrome browser, arguing that artificial intelligence will actually only ramp up the tech giant's online search dominance. Another option is that the judge, in a decision expected in August, will order an end to the payouts from Google to Apple and others for the default position on devices. Cue told the court this would have a significant impact on Apple's ability to invest in new products and services.

This Apple executive rocked Alphabet shares this week; here's what happened and the real story behind it

Google Search faces AI challenge as Apple exec Eddy Cue reveals a drop in Safari-based searches for the first time in over 20 years -- hinting that AI chatbots like ChatGPT are changing how people search online. Alphabet stock took a hit, and while Google claims total search is growing, data shows its market share is slipping. With younger users preferring TikTok or Instagram, and ad clicks slowing due to AI Overviews, the search giant is under pressure. This story breaks down the data, the impact of AI tools, and what it means for Google's future in a fast-changing digital world.AI chatbots shaking up Google Search? Apple exec's testimony rattles Alphabet investors- Alphabet, the parent company of Google, took a hit this week after a surprising testimony from Apple's senior vice president Eddy Cue. During the ongoing U.S. antitrust trial against Alphabet, Cue revealed that the volume of Google searches made through Apple's Safari browser declined -- for the first time in over 20 years. He pointed the finger at AI-powered tools as the main reason users are turning away from traditional search methods. That single comment sent shockwaves through the market. Alphabet shares dropped as much as 9% during intraday trading before recovering slightly. Even after the rebound, the stock was still down about 6% compared to where it stood before Cue's statement. For a long time, Google Search has been the undisputed leader in how people find information online. It still brings in about 55% of Alphabet's total revenue, though exact profit numbers aren't disclosed by the company. But now, new players -- especially AI chatbots like ChatGPT -- are quietly shifting user behavior. Cue's statement highlighted this shift, raising real concerns among investors who've been worried that AI search tools may eat into Google's dominance. And the data adds weight to that fear. While Apple's Eddy Cue suggested that Safari-based search traffic had dropped, Google responded by clarifying that overall search queries are still growing. The company said in a statement, "We continue to see overall query growth in Search," and added that total queries from Apple devices were also increasing. This suggests that users are still turning to Google, just not always through Safari. Instead, they may be using the Google app, Google Chrome, or even voice-based search and Google Lens. These newer forms of search aren't supported well on Safari, possibly driving the shift. Independent data points show a small but steady erosion in Google's search engine market share since ChatGPT launched in November 2022. According to StatCounter, Google's global market share has slipped from 93% to just under 90% -- its first dip below 90% since 2015. At the same time, Microsoft's Bing, which now uses OpenAI's models, rose slightly -- from 3% to 3.9%. SimilarWeb added more context, noting a 2% decline in Google's search share year-over-year. Their report also suggests that all traditional search engines are seeing a traffic dip, pointing to a wider move toward AI-based tools for information. Still, in 2024, ChatGPT only captured around 1% of total traffic compared to Google, per SparkToro and Datos. Among AI chatbots, ChatGPT led with 80% of the market share, followed by DeepSeek (6.5%), Google's AI tools (5.6%), Grok by X (2.6%), and Perplexity (1.5%). Another emerging trend is where people are looking for recommendations. A Bernstein Research report from September 2024 found that nearly half of Gen Z users prefer using TikTok or Instagram over Google when searching for things like travel spots, restaurants, and products. This shift in behavior, especially among younger users, shows that Google's hold on search is no longer universal. Social media platforms are becoming the go-to for certain types of searches -- further splitting user attention. Despite the drop in search share, Google Search revenues grew 7% in the first quarter of 2025. But that's down from a stronger growth rate seen throughout 2024. Alphabet's "Search & Other" paid click growth slowed to just 2%, compared to 5% in 2024. Philipp Schindler, Alphabet's chief business officer, claimed during the earnings call that monetization remained steady. But notably, he avoided addressing questions about click-through rates (CTR) after the launch of AI Overviews, which deliver quick answers instead of traditional link lists. According to JPMorgan analyst Doug Anmuth, these AI Overviews might be behind the slower growth in paid clicks, since they reduce ad space and give more natural answers. Two separate marketing firm studies found CTRs dropping by as much as 35% for AI Overviews compared to regular Google search results. In April 2025, Google executive Sissie Hsiao admitted during the antitrust trial that ChatGPT had reduced certain search categories, like math help and homework. These aren't big ad drivers, but the larger concern is what comes next. Google's ads chief, Vidhya Srinivasan, reportedly warned in October 2024 that generative AI will eventually cannibalize Search revenue, pushing for ads to be included in Gemini chatbot answers. Despite these shifts, Alphabet isn't in immediate danger. It remains the global leader in search, and its revenue base is broad -- thanks to YouTube, Cloud services, and other products. But the company clearly understands that it's facing what business experts call an "innovator's dilemma." AI is changing how people seek information. And as Eddy Cue's comments show, the shift is happening faster than many expected. Google must now move quickly to adapt -- before more users, and dollars, move elsewhere. Q1. Is AI replacing Google Search? AI chatbots like ChatGPT are slowly changing how people search, especially for quick answers. Q2. Why did Google Search volume drop on Safari? Apple's Eddy Cue said users now prefer AI tools, not Safari, for finding info online.

Alphabet shares take $120 billion blow as search warnings blare

Google parent Alphabet Inc. faces growing investor concerns as Apple explores AI integration in its Safari browser, potentially impacting the internet major's lucrative search engine deal. A drop in Safari searches fuels fears that rivals like OpenAI are eroding Google's market share, causing a significant stock selloff.For more than a year, Alphabet Inc. shareholders have fretted over long-term risks posed by artificial intelligence to the company's money-printing search business. This week the threat became much more immediate. Court testimony from an Apple Inc. executive on Wednesday revealed that the iPhone maker is exploring adding AI services to its web browser for which Google now pays an estimated $20 billion a year to be the default search engine. Potentially more worrisome: searches on Apple's Safari fell for the first time last month, according to Eddy Cue, Apple's senior vice president of services. The revelations implied that queries fielded by rivals like OpenAI and Anthropic already may be eating into Google search, which accounts for more than half of the parent company's revenue and the vast majority of profits. Alphabet said in a subsequent blog post that search queries continue to rise, including those coming from Apple users. The comments helped arrest the selloff that saw the shares close down 7.3% on Wednesday. But Alphabet is still on pace for a weekly decline of about 6% and $120 billion drop in market value. "The basic issue is, will Alphabet lose its cash cow?" said Art Hogan, chief market strategist at B. Riley Wealth Management. "This is the first time Alphabet has really seen competition in search since the category was originated, and we're already seeing chinks in the armor." Fears that Alphabet is falling behind in AI have resulted in multiple selloffs since ChatGPT's debut in late 2022; in February 2023, for example, the stock sank on concerns about the accuracy of its AI chatbot. However, it has shown an ability to rebound off those losses, and up until Wednesday, Alphabet had been on an upswing. The shares rallied in the days following its earnings report that showed its search advertising business remained strong in the first quarter, which ended on March 31. The size and speed of Alphabet's selloff shows how nervousness about the risks of disruption from AI -- even for a company with formidable talent in the field -- is overshadowing everything else and making it difficult for investors to value the tech giant. Alphabet has long traded at a discount to megacap peers like Microsoft Corp. But that gap has widened over the past year amid worries the YouTube owner is falling behind in AI. At the close on Wednesday, Alphabet shares were priced at 15 times profits projected over the next 12 months, compared with an average of 21 times over the past decade, according to data compiled by Bloomberg. Microsoft is priced at 30 times projected profits, compared with an average of 26. The problem is that the greater competition in search could put future profits at risk, according to B. Riley's Hogan. "We don't know how much share it might lose, or how quickly," he said. "That means we can't be confident in the earnings part of the P/E multiple." An Alphabet representative declined to comment further. Alphabet's market share seems to be holding up. According to the latest Statista data, which is from March, Alphabet has about 89.7% of worldwide market share for search engines. That compares with 92.9% share in January 2023, just after ChatGPT's release. Most analysts on Wall Street remain bullish on Alphabet. More than 80% of the 76 analysts tracked by Bloomberg who cover the company have buy ratings. While that's below other megacaps -- Microsoft, Amazon.com Inc., and Meta Platforms Inc. are all rated buy by 90% or more of analysts -- Alphabet trades nearly 30% below the average analyst price target, a higher return potential than the others. Evercore ISI's Mark Mahaney said that even though Google search volume growth has slowed, revenue expansion remains consistent. In a research note published on Thursday, he advised clients to buy shares in the wake of the drop. However, some are getting more cautious. Current estimates calling for 2025 net income of $115 billion could be overly optimistic, according to Melius analyst Ben Reitzes. "Given the April trends indicated in Cue's comments, paid clicks could be getting worse," he wrote in a research note on Wednesday. "In our experience, this stuff happens quickly."

Google At Staggering 42% Discount To S&P 500 - Alphabet (NASDAQ:GOOGL)

Alphabet Inc GOOGL GOOG just clocked one of its worst trading days since 2023, shedding over 7% and nearly $150 billion in market cap. Apple Exec's Testimony Sends Google Stock Plummeting What caused the market to pull the plug? A courtroom mic-drop from Apple Inc's AAPL Eddy Cue, senior VP of Internet software and services. Cue's testimony at the Google Commercial Search antitrust trial sent shockwaves through the tech world. He revealed that Apple saw its first drop in search volume in two decades this April - and pointed the finger squarely at AI rivals like ChatGPT and Perplexity. More alarming, Apple has been chatting with both about becoming potential Safari search partners. That's like inviting your ex's nemesis to the prom. Read Also: 'AI Is Eating Search' Google Rival Perplexity CEO Arvind Srinivas Says As Dan Niles Predicts 'Agents' To Take Future Share Amid Alphabet, Apple Stock Fall Google Stock Sell-Off Overdone, Says Analyst Investors didn't take it lightly. Google's dominance in search suddenly looked a bit shakier, especially with paid click growth crawling at just 2% in Q1 - down from mid-single digits last year. But JPMorgan analyst Doug Anmuth thinks the sell-off was a bit much. In his words: "Overdone." Anmuth emphasized that Google is still the default on Safari and continues to see "overall query growth...including coming from Apple devices." He also notes that Apple's $20 billion revenue share from Google is too big to walk away from. While bears highlight a slowing growth story, bulls point to Google's fundamentals. YouTube's ad revenue climbed 14% in the fourth quarter of 2024 and Google Services' operating margin jumped to a strong 39%. Not to mention, AI Overviews now reaches 1.5 billion users monthly -- a stat worth bragging about as the I/O event looms on May 20. With Google stock trading at just 16.1x forward earnings, according to data from Benzinga Pro - 42% below the S&P 500's 27.65x - and Wall Street's top analysts pegging a 44.6% upside, there's a case to be made that this panic is more courtroom drama than structural decline. Read Next: Top 3 Health Care Stocks That Could Sink Your Portfolio In Q2 Google: Shutterstock GOOGLAlphabet Inc $154.271.91% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum 46.48 Growth 66.38 Quality - Value 51.90 Price Trend Short Medium Long Overview AAPLApple Inc $195.49-0.39% GOOGAlphabet Inc $155.551.80% Got Questions? Ask Which tech stocks could benefit from Google's dip? How might Apple's search strategy impact Google? Are AI search competitors set for a boost? Which advertising platforms could gain from Google's fall? Will investors find value in Google's low valuation? How could JPMorgan's analysis influence investor sentiment? Is there potential in Google's YouTube revenue growth? What implications does Antitrust trial have for tech stocks? Which emerging tech companies could fill the gap? How might Google's fundamentals attract new investors? Powered By Market News and Data brought to you by Benzinga APIs

Apple, Alphabet Shares Tumble Amid Potential AI Search Shift - Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL)

Feel unsure about the market's next move? Copy trade alerts from Matt Maley -- a Wall Street veteran who consistently finds profits in volatile markets. Claim your 7-day free trial now. Apple Inc's AAPL stock dipped 2.1% to $194.35, while Alphabet Inc GOOGL GOOG shares plunged 5.7% to $153.95 on Wednesday, following reports that Apple may be rethinking its long-standing partnership with Google. What To Know: As reported by Bloomberg, Apple's senior vice president of services, Eddy Cue, testified in a U.S. antitrust trial on Wednesday that the company is "actively looking at" integrating an AI-powered search engine into Safari, its default web browser. Cue indicated Apple is evaluating alternatives like OpenAI, Anthropic and Perplexity AI, the companies behind popular AI tools like ChatGPT, Claude and Perplexity Assistant. He noted that Safari searches declined for the first time last month, citing AI tools as a key reason. Read Also: Oklo Stock Slides Following Tuesday's Surge: What's Going On? Though Cue said Google should remain Safari's default search engine for now -- especially given the estimated $20 billion annual revenue Apple receives from the deal -- he acknowledged that AI represents a major industry shift. The Apple executive believes emerging AI platforms could eventually outperform traditional search, adding that Apple has already begun talks with Perplexity. Alphabet investors responded sharply to the news, likely concerned about Google's long-term search dominance, which has faced increasing threats amid the emergence of AI tools. Read Also: All Eyes On Powell: What Betting Markets Expect Him To Say Wednesday According to data from Benzinga Pro: AAPL has a 52-week high of $260.09 and a 52-week low of $169.21. GOOGL has a 52-week high of $207.05 and a 52-week low of $140.53. AAPLApple Inc$194.49-2.03%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum54.35Growth46.03Quality82.33Value8.28Price TrendShortMediumLongOverviewGOOGAlphabet Inc$154.82-6.28%GOOGLAlphabet Inc$152.85-6.36%Market News and Data brought to you by Benzinga APIs

'AI Is Eating Search' Google Rival Perplexity CEO Arvind Srinivas Says As Dan Nile Predicts 'Agents' To Take Future Share Amid Alphabet, Apple Stock Fall - Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL)

Market giants Alphabet Inc. GOOGL GOOG and Apple Inc. AAPL saw their stocks tumble on Wednesday after reports suggested Apple may be reconsidering its lucrative search partnership with Google, with artificial intelligence emerging as the catalyst for potential industry disruption. What Happened: Apple's Senior Vice President of Services, Eddy Cue, testified in a U.S. antitrust trial that the company is "actively looking at" integrating an AI-powered search engine into Safari, evaluating alternatives from OpenAI, Anthropic and Perplexity AI. Cue revealed Safari searches declined for the first time last month, attributing the shift to growing AI tool adoption. Alphabet shares plunged 7.51% to $152.80 while Apple dipped 1.14% to $196.25. "AI is eating search," stated Perplexity AI CEO Aravind Srinivas on X, as his company positions itself as a contender in the evolving search landscape. Dan Niles, founder of Niles Investment Management, highlighted on X that the drop in Safari search activity aligns with Google's recent performance, where year-over-year growth in paid clicks slowed to 2% in the first quarter of 2025 -- down from 5% in the same period last year and 8% in early 2023, following the rise of ChatGPT in late 2022. Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started See Also: Disney's $30 Billion Theme Park Bet Pays Off As Bob Iger Touts 'All-Time High' Returns, Stock Rallies 10% After Q2 Earnings Why It Matters: A recent 9to5Mac comparison showed Perplexity "clearly outperformed or is at parity" with Apple's Siri and OpenAI's ChatGPT across most categories, according to Srinivas, emerging as the most versatile option by combining web-based intelligence with limited Apple app integration. Niles predicted that companies like "OpenAI, Anthropic, Perplexity, xAI" will continue taking market share from traditional search, with "AI agents" accelerating this trend. Despite these shifts, Cue indicated Google should remain Safari's default search engine for now, particularly given the estimated $20 billion in annual revenue Apple receives from the arrangement. Perplexity, backed by Jeff Bezos and NVIDIA Corp. NVDA, has gained momentum with recent Android launches and a SoftBank Corp. SFTBY partnership deploying 7,000 sales team members to drive enterprise adoption in Japan. Read Next: Shopify Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Image Via Shutterstock AAPLApple Inc$198.190.99%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum54.35Growth46.03Quality82.33Value8.28Price TrendShortMediumLongOverviewGOOGAlphabet Inc$154.951.41%GOOGLAlphabet Inc$153.581.45%NVDANVIDIA Corp$119.001.66%SFTBYSoftBank Group Corp--%Got Questions? AskWhich AI-driven search companies could thrive?How will Apple's search strategy impact its revenue?Which tech stocks might benefit from AI disruptions?Could Perplexity AI's growth affect Google?What potential does NVIDIA see in AI search?How might OpenAI leverage this search shift?Are AI search agents the future for investors?Which competitors are emerging in the AI space?What implications does this have for advertising revenue?How will Safari's search market evolve with AI?Powered ByMarket News and Data brought to you by Benzinga APIs

Google's 'Golden Goose' Under Threat As GenAI Surges And Apple Rethinks Search Ties, Warns Gene Munster - Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL)

According to a leading fund manager and venture capitalist, Google-parent Alphabet Inc.'s GOOGL GOOG search dominance is facing mounting challenges, with a high-profile antitrust lawsuit, and emerging technologies that are reshaping consumer behaviours. What Happened: On Thursday, Gene Munster, the managing partner at Deepwater Asset Management, appeared on CNBC's Fast Money to discuss the challenges currently facing the search giant. Munster notes the rapid acceleration in OpenAI's ChatGPT, "It took 10 months to go from 1 to 200 million users, then just six months to reach 400 million," he says, "It's on track to hit 800 million by June," warning of a seismic change in how users search for information online. This shift, Munster says, creates a difficult scenario for Google, as it will struggle with traditional monetization options if it has to keep up with GenAI competitors. "The golden goose is showing its age," he says, while citing Apple Inc.'s AAPL Senior Vice President of Services, Eddie Cue, who recently said under oath during the United States Department of Justice hearing that search usage within Apple's Safari browser has declined for the first time. "That caught my attention," Munster said, as "Safari accounts for about half of browser use on iPhones." This comes amid the DOJ turning up the heat on Apple's $20 billion a year deal with Google, which involves making it the default search engine on the iPhone. Drawing parallels with Google, Munster gives the example of Redbox, the movie rental service that once disrupted Blockbuster, but eventually faded into oblivion. "I thought Redbox would be over before it started, but it took 10 years to wind down," he said. "The pace of change [with Google] is faster than I expected," he adds. At the end of the day, Munster says, the central question is "how [Google is] going to create a product that people want, that still allows them to monetize." See Also: Bill Gates Slams Elon Musk Over Abrupt USAID Cuts: 'The Picture Of The World's Richest Man Killing The World's Poorest...' Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started Why It Matters: News that Apple may be reconsidering its long-standing partnership with Google in favor of an AI-powered search alternative prompted a pullback in Alphabet shares this week. Aravind Srinivas, CEO of Perplexity AI, weighed in on Alphabet's stock decline with a post on X, stating, "AI is eating search." His comment comes as Perplexity positions itself as a leading contender in the rapidly evolving search landscape. Price Action: Alphabet shares were up 1.93% on Thursday and 0.48% after hours. Despite scoring well on growth and quality, the stock is sports an unfavorable price trend in the short, medium and long term according to Benzinga Edge Stock Rankings. For more insights, sign up for Benzinga Edge. Read Next: Tesla Rival Lucid Offers Over $20,000 Discount On Air Sedan Amid Auto Tariff Impact Image Via Shuterstock AAPLApple Inc$198.000.26%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum49.76Growth46.18Quality82.46Value8.77Price TrendShortMediumLongOverviewGOOGAlphabet Inc$156.570.53%GOOGLAlphabet Inc$155.180.58%Got Questions? AskWhich AI search companies could disrupt Google?How will Apple's search strategy impact Google?What investments in AI are gaining traction?Who benefits from Google's potential decline?Which emerging tech firms are positioned for growth?How might investors respond to Alphabet's challenges?What market shifts could stem from AI advancements?Which consumer behavior changes favor AI over Google?How will antitrust issues affect tech investments?Which financial strategies might work against Google?Powered ByMarket News and Data brought to you by Benzinga APIs

Apple Executive Says iPhone Users Are Ditching Google -- Now Chamath Palihaptiya Urges The Search Giant To Stop Waiting For Data And Start Fighting Models Like ChatGPT - Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL)

In the latest episode of the All-In Podcast, venture capitalist Chamath Palihapitiya and fellow co-hosts reacted to a revelation from Apple Inc. AAPL executive Eddy Cue stating that the tech giant witnessed a decline in its search volume last month -- something that hasn't happened in 20 years. What Happened: In the podcast, which was recorded on Thursday, Jason Calacanis mentioned Cue's statement, which the Apple executive made during his testimony for Alphabet Inc.'s GOOG GOOGL Google. "For the first time ever in over 20 -- I think we've been at this for 22 years -- last month, our search volume actually went down," Cue testified, citing the growing popularity of ChatGPT and Perplexity AI as emerging alternatives. The news sent shockwaves through the tech sector. In the five days, Alphabet's class A shares declined by 6.27% while class C shares decreased by 6.24%, according to data from Benzinga Pro. See Also: Netflix Debuts OpenAI-Backed Search Engine That Lets You Discover Movies And TV Shows Based On Emotions, Not Just Titles Calacanis then asked Palihapitiya if this is the time to panic. In response, the "SPAC King" called it a moment of reckoning. He acknowledged that Google's Gemini remains one of the most impressive models in many domains, especially general information and chat. However, he said that the company is no longer enjoying its once-dominant 99% search market share. Instead of waiting for more concrete data, Palihapitiya urged Google to assume a significant share erosion, potentially dropping to 75% within two years, and begin planning accordingly. That planning, he said, should include aggressively positioning Gemini as the primary user-facing interface for Google. But doing so, he warned, requires "taste and courage." Otherwise, Google risks being caught flat-footed while rivals like Apple, OpenAI and Meta Platforms, Inc. META quietly implement changes and only announce them after they've already made an impact. That reactive mindset, he cautioned, could demoralize Google's talented teams and leave the company trailing in an industry where momentum matters. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It's Important: Last month, Alphabet reported first-quarter revenue of $90.23 billion, a 12% increase year-over-year that exceeded Wall Street's estimate of $89.2 billion. A major contributor to this growth was Google Search, which generated $50.7 billion in revenue, up from $46.2 billion in the same quarter last year. As of March 2025, Google held a 79.1% share of the global desktop search engine market. While it still maintains a significant lead over its rivals, this marks the lowest market share the company has seen on desktop platforms in more than 20 years, according to Statista. The German database company also noted that in January 2025, Google commanded 93.82% of the global mobile search engine market. Photo Courtesy: JHVEPhoto on Shutterstock.com Read Next: Nvidia Not Acting In US Interests, Says Chamath Palihapitiya -- Questions, How Alibaba Or DeepSeek Are One Step Ahead Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AAPLApple Inc$198.520.52%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum49.76Growth46.18Quality82.46Value8.77Price TrendShortMediumLongOverviewGOOGAlphabet Inc$154.17-1.01%GOOGLAlphabet Inc$152.65-1.06%METAMeta Platforms Inc$591.65-1.06%Market News and Data brought to you by Benzinga APIs

Why Alphabet Stock Is Plummeting Today -- Could the Tech Giant's Search Fears Finally Be Coming True? | The Motley Fool

An Apple executive's legal testimony Wednesday is sending shock waves through the tech community. Bloomberg is reporting that Eddy Cue, Apple's senior vice president of services, testified Wednesday that Apple is "actively looking at" reshaping the Safari web browser on its devices to focus on artificial intelligence (AI)-powered search engines. The revelation came during Cue's testimony in the U.S. Justice Department's antitrust lawsuit against Alphabet -- Google's parent company -- which centers on the cornerstone deal that makes Google the default search engine in Apple's Safari browser. When ChatGPT-3 was released to the public in late 2022, investors immediately were concerned that the technology could prove a true threat to Google Search's near-stranglehold on how users search the web. The $20 billion deal that ensures Google is the default on Apple devices is a key aspect in maintaining its dominance. If Apple chooses to introduce AI-powered alternatives to Google on its devices, Google Search could lose a major chunk of its traffic, and therefore, value to advertisers. Cue also disclosed the particularly concerning detail that searches on Safari dipped for the first time ever last month, which he attributed to people using AI alternatives. This concrete data suggests the threat to Google's search monopoly may be materializing faster than many had anticipated. Google Search is responsible for more than half of Alphabet's total revenue. Losing its grip on internet searches would be very bad news for the company's bottom line. Still, as much as the testimony is concerning, the tech giant is supremely aware of the threat and is working to mitigate it. Alphabet's own AI offering is excellent, and I think it will ultimately weather this storm.

Alphabet Stock Sell-Off: 4 Reasons Why You Shouldn't Panic About Google Search | The Motley Fool

Shares of Alphabet (GOOGL -1.02%) (GOOG -0.92%) sank after Apple executive Eddy Cue said that searches on Safari declined for the first time ever in April. Cue attributed the decline to people using more artificial intelligence (AI) chatbots and predicted that AI search engines will eventually replace traditional search. He added that Apple will likely add search options in Apple's Safari browser from AI companies such as OpenAI, Perplexity, and Anthropic in the future. He also said that within the next decade, iPhones may not even be around -- the implication being that the combination of AI and wearables could replace smartphones. The news led Alphabet bears to declare that search has officially been disrupted and is now set to become a dying business. However, there are good reasons to believe this is not true, and Alphabet will be just fine. Let's look at four reasons why Alphabet investors should not panic. $20 billion is the amount of revenue-sharing money that Apple receives from Alphabet each year for Google to be the exclusive search engine for its Safari browser. The revenue is pure margin and, as such, accounts for more than 15% of Apple's operating income. Cue's comments were part of his testimony in federal court during the remedy phase portion of the Department of Justice's antitrust lawsuit against Alphabet. There is no doubt that Apple wants this highly lucrative revenue-sharing agreement to continue. By publicly calling out a decline in Google's search queries and floating the idea of adding AI-powered search to Safari, Apple is looking to accomplish a few goals. The first is making it known that Google is facing increased competition, which could help justify the two companies keeping their current search deal in place. Second, Apple is signaling that it has other options, which could be an attempt to improve its bargaining power for any future search revenue-sharing deals. Finally, Apple is likely trying to shift the narrative that it is a technological laggard and show that it is a forward-thinking player in AI. At the end of the day, though, Apple has 20 billion reasons why it would want to depict search as becoming increasingly irrelevant. For its part, Alphabet refuted Apple's claims about its search queries declining in a blog post. It said it continued to see overall search query growth, including on Apple devices and platforms. Technically, Apple's and Alphabet's statements could be true if Apple's Safari browser were losing some market share on its own devices. Regardless, there is also a big difference between search queries and profitable search queries. Historically, Alphabet only serves ads on 20% of its search queries. Meanwhile, its most profitable searches are generally simplistic terms, such as searches for "iPhone" or "cheap insurance." It also has a strong local ad network, so searches such as "the best pizza near me" also do well. Notably, when I used this prompt, Google search provided much better results and easier ways to order than AI chatbots. Meanwhile, Google isn't making money from searches about historical events or curiosity-driven questions with no commercial relevance. So, asking AI chatbots complex questions about the Civil War doesn't cost Alphabet any money. At the end of the day, losing complex search queries to AI chatbots will probably have very little impact on Google search revenue moving forward. Another important thing to consider is that AI chatbots are likely to eventually have a much different monetization model than search. The cost of answering AI queries is exponentially higher than providing search results, and AI also leads to a lot of queries that would not be ideal for advertising. AI is currently generally free without ads, while premium tiers cost around $20 a month (ChatGPT Pro, Perplexity Pro, Gemini Advanced). Paid tiers with some advertising support are likely the future model of the industry. However, this is likely to make AI chatbots more complementary than replace search, for a couple of reasons. One is that many people will simply not want to pay for an AI subscription. Second, search is still better at certain things, such as being integrated with e-commerce and local businesses, as well as being more transparent with sources. However, one of Google's biggest advantages is that it has a huge two-sided ad network that can connect advertisers to global, national, regional, or local audiences. This is not something an AI start-up can easily replicate, which makes subscriptions a more viable way to monetize AI chatbots than a pure advertising model. Meanwhile, if search usage declines or plateaus and AI chatbots generate only modest ad revenue, search ad prices are likely to rise. That's because advertisers will still need effective ways to reach consumers, and with fewer high-traffic platforms available, they'll be willing to pay a premium to access that limited supply. Search is a huge part of Alphabet's business, make no mistake. However, the company has other attractive leading businesses, including YouTube and its fast-growing cloud computing unit, Google Cloud. Its Waymo robotaxi business is also growing quickly and looks like its next big business. It's also made strides in quantum computing with its Willow chip. Also, don't count Google out in AI just yet. Its Gemini model is now ranked among the top-performing AI models, and the company is looking to use Gemini to enhance Google search with AI. Over time, this could help both defend and even expand Google's search business. Meanwhile, offering API access to its search and AI capabilities could create a promising new revenue stream, especially as developers embed these tools into enterprise and consumer applications. With a forward price-to-earnings ratio of around 16x this year's analyst estimates, the stock is too cheap in my view, and the risk is overstated.

Here's Why I'm Not Too Worried for Alphabet Despite Apple's Potential New AI-Powered Safari Search | The Motley Fool

Investors panicked when the possibility was floated, but take a step back and look at the bigger picture. Bad news for Alphabet (GOOG -0.92%) (GOOGL -1.02%). Consumer technology titan Apple (AAPL 0.49%) may soon be adding artificial intelligence (AI)-powered web-search tools like OpenAI and Perplexity to its mix of search platforms offered to users of Apple's Safari web browser. Given the threat this poses to Google's dominance of the global search business -- which accounts for more than half the company's top line -- shares of parent company Alphabet fell 8% on Wednesday after this possibility was revealed. The pullback makes superficial sense. What if, however, the market overreacted by jumping to an unnecessarily bearish conclusion? That's arguably what happened, making already beaten-down Alphabet shares even more attractive to anyone considering taking on a new position in this powerhouse name. Take the possibility with a big grain of salt. It wasn't announced in a press release or during an official corporate presentation. Rather, it came out during a trial that doesn't even directly involve Apple. Merely serving as a witness for the antitrust case the U.S. Department of Justice is making against Alphabet, Apple's services chief Eddy Cue commented on Wednesday that he believes artificial intelligence-powered web search tools like OpenAI or Perplexity will eventually be added to the list of search engines made available to users of Apple's proprietary web browser, Safari. No likely time frames were given, nor were any guarantees made. Just a broad brushstroke. The bears took the ball and ran with it anyway, without any perspective on just how loose Cue's comment was. Just for the sake of argument, however, let's say Apple's willingness to introduce these alternative search tools or even remove Google as Safari's default search engine is imminent. Is it actually a serious problem for Alphabet? Probably not, for a couple of reasons. One of those reasons is Google's existing dominance, as well as Safari's relatively limited use as a means of browsing the web. According to StatCounter, Google consistently handles 90% of the world's web queries. Some of those are made through Safari, where Google is currently the default search engine option. Many of them aren't, though. Safari's browser market share is still a fairly scant 17%, which is a distant second to Google Chrome's browser market share of 66%. Could that 17% still make a measurable dent in Google's search business? Maybe, but it's not likely. See, according to online advertising research outfit Chitika, 97% of iPhone owners (by far the majority of Apple's iOS users) still use Google to search the internet, with roughly half of those searches being made with the Safari browser. And this data underscores the other reason Alphabet shareholders may not want to sweat Apple's vague plans to offer other web-search options in the future. That's not Google's dominance of the search arena, but its overwhelming integration into so many people's use of the internet itself. Google's Gmail alone boasts over 2.5 billion worldwide users, for instance, while Google Docs has eclipsed Microsoft's Office within the productivity software space. TV ratings outfit Nielsen says Google's YouTube is the United States' single-most-visited streaming video platform as well, facilitating more viewing time than industry powerhouse Netflix. And globally, more than 1 billion hours' worth of YouTube videos are accessed on television sets alone every single day. The point is, Google is an inescapably important part of how and why many people connect to the World Wide Web, including for iPhone and iOS users. It's going to take a lot to sever Safari users' usage of Google's other services from their usage of Google's search engine. That's particularly true given how Google's AI-powered search is already in place and is being well received; Alphabet reports that during the first quarter of this year alone, its AI Overviews averaged on the order of 1.5 billion monthly users. Never say never, of course. It's possible a handful of Safari users could give alternative search tools like OpenAI, Perplexity, and Anthropic a try and end up sticking with them. It's also likely that one of the outcomes of the aforementioned trial could be an end to Google's payments to technology companies in exchange for making its search engine the default option for their web browsers. This prospect isn't nearly as catastrophic as some are fearing it may be, though. Again, Safari's reach is modest, and even when and where Safari is used, it's largely being used to facilitate a Google-based search. That's a habit that isn't apt to be kicked anytime soon, if ever. Indeed, the fact that we don't even think about how the word Google has become as much of a verb as it is a name ("just Google it") -- and for some people, almost synonymous with the internet itself -- underscores just how much this all-encompassing tech giant has ingrained itself into so many people's daily lives. That's the kind of staying power that isn't simply disrupted by a new web search option, even if that alternative is powered by AI. Bottom line? Alphabet's search business might be dented by the advent of other AI-powered search options featured by Safari. It won't be major or permanent damage, though. If you liked Alphabet before Wednesday, there's still just as much to like now.

Is This the End for Alphabet Stock? | The Motley Fool

In the first quarter, 56% of Alphabet's revenue came from the Google search engine, so this is clearly a huge part of its business. If Google search is replaced by AI, could that be the end of Alphabet's stock as investors know it? The news that AI-powered search will replace traditional search engines isn't news to Alphabet management's team. It's well aware of the challenges it faces and has already worked to incorporate AI into search results. Instead of rummaging through information from a Google search, users now find an AI summary presented at the top of the page. Alphabet's management mentioned on its Q1 conference call that this is an incredibly popular feature that's still growing its user base. Furthermore, the company is working on adding additional features and expanding its use cases. So, even though the stock market reacted negatively to the news that Apple delivered to federal court, I don't think investors should follow suit. In fact, they should be rejoicing. Why should they rejoice? Well, Alphabet may not need to pay Apple as much money to become the default search engine on its products. In 2022, Alphabet paid Apple $20 billion to be the default search engine on Apple's products. This landed Alphabet in hot water and was a key factor in the illegal monopoly case against the Google search engine. Apple's executive Eddy Cue mentioned that Apple may offer AI-powered search alternatives to users rather than defaulting to Google. If that's the case, Alphabet wouldn't need to pay Apple because it wouldn't have the default status anymore. If that happened, Alphabet's profits would jump by $20 billion immediately. Considering that Alphabet has generated around $111 billion in profits over the past 12 months, this would provide nearly a 20% increase in profits overnight. However, if Apple gave users the choice of what platform they'd use, Alphabet would likely lose some revenue due to some users opting for an alternative to Google. So, it would be unlikely that all of the $20 billion would make it to the bottom line. But I'd say a large chunk of it would still be there because the Google search engine is still the most popular worldwide by a wide margin, and many users would likely select it anyway. So, this isn't the end for Alphabet's stock; it's more like a new beginning. The market doesn't see it this way, and Alphabet's stock recently traded for a dirt-cheap 16 times forward earnings. That's a very inexpensive price to pay for a company that's still growing at a healthy rate. To add another catalyst, if Alphabet doesn't have to pay Apple $20 billion, an expense would be eliminated overnight and added directly to Alphabet's earnings. This would decrease the denominator of the price-to-earnings (P/E) ratio, making the stock even cheaper. Although the rest of the market may be a bit fearful about Alphabet's stock, I think the pessimism is unwarranted. The current stock price represents excellent value for those who can endure many headline-induced fears.

Correction or Not: This Artificial Intelligence (AI) Stock Is Worth Buying for the Long Haul | The Motley Fool

The underlying Google organization started its game-changing search engine in the late 1990s. I studied information science and AI at the time (go Noles!), and was fascinated with Google's search engine. Older alternatives like Lycos, WebCrawler, and Alta Vista could also deliver helpful search results but only if you knew how to tweak your queries just right. It was a lot of work to design search strings like (Motley AND Fool AND investing) AND NOT (scam OR speculation), hoping to find the exact thing I'm looking for The magic of Google's search engine is that it went a step further. The search algorithm has become a meme nowadays as it steers web users in certain directions and content publishers strive to capture interest with various details. But back then, it was a revelation to see Google's search tool anticipate what the user is really looking for. The top results were even ranked in a sensible way without detailed instructions. These unique qualities were later copied in some way by every serious rival. They are built on deep text analysis -- also known as machine learning or artificial intelligence. Not much has changed after more than 25 years. Google kept improving its search engine, surrounded it with other AI-based tools such as Google Translate and the Google Maps navigation functions, and made AI easily available to anybody. Long before adopting the Alphabet moniker, Google was an AI expert for the masses. So I wasn't surprised when the company had a large language model (LLM) ready to go just a few months after OpenAI released its ChatGPT 3 platform. If anything, I can't wait to see what Alphabet still hides behind the AI lab's closed doors today. Alphabet's Google arm remains unbeatable in the online search and advertising market -- to a large extent because of its longtime AI commitment. The Gemini LLM is also a leading ChatGPT challenger, and is already integrated into the popular Gmail and Google Docs tools. The classic Google Search experience got an AI mode in March 2025, too. The Gemini system is going places. Google's AI competence is simply not up for discussion. I'm talking about a proven leader here, with an enormous amount of engineering and financial resources to throw behind the next big idea. Google (and Alphabet) has been very kind to longtime investors. If you invested just $1,000 when Google hit the stock market in August 2004, that investment would be worth more than $63,700 on May 13, 2025. Alphabet's stock price could double and still compare favorably to Microsoft and Nvidia's valuation ratios. I'll agree that Nvidia has earned its premium price via unbeatable business growth, but Alphabet's sales and earnings are rising faster than Microsoft's. Is Alphabet's stock undervalued or Microsoft's overpriced? You be the judge. Let's just say that I only own one of these two AI stocks, and my choice isn't headquartered in Redmond, Washington. Alphabet has come a long way from the Stanford garage of its youth, and it's still a thrilling growth story. With or without broad market corrections along the way, I'm almost always a buyer of Alphabet's stock. It's only more tempting in times like these, as the stock trades 23% below February's all-time highs.

Will AI Search Engines Cripple Google's Dominance? | The Motley Fool

Artificial intelligence (AI) is rapidly changing the way many companies, across all industries, are doing their day-to-day work. Some of the biggest changes are undoubtedly in technology, where many top companies are investing heavily into AI chatbots and related functions. As that happens, one company that may be most directly affected by all this is Alphabet (GOOG 2.32%) (GOOGL 2.21%), whose Google Search engine is a huge part of its business and generates tens of billions of dollars in ad revenue each quarter. As AI potentially changes how people search for questions and do research, could that spell big trouble for Alphabet's business? AI is changing the way people search for answers to their queries. Chatbots such as ChatGPT and Perplexity are making it possible for people to have their questions answered without having to open up a browser and go to a search engine like Google. Apple (NASDAQ: AAPL), which has Google as the default search engine on its Safari browser, is looking to add AI services as possible search options in the future, according to its senior vice president of services, Eddy Cue. He believes that AI-powered searches will be the new norm, replacing conventional search engines. Shares of Alphabet fell on the news, with investors worrying that this could create a significant risk for the business in the long run. That's because the bulk of the company's ad business comes from its search business. Through the first three months of the year, Alphabet's ad revenue totaled $66.9 billion. Of that tally, $50.7 billion was from Google Search and other (which includes Gmail, Google Maps, and Google Play), representing a little over three-quarters of that figure. A decline in traffic for search could severely affect how much advertisers are willing to pay Google, which would be a big hit to its top line. AI is revolutionizing sectors and industries, and Alphabet is by no means immune. At the same time, the company is also investing heavily into AI and its Gemini chatbot. If you use Google Search today, you might see an "AI Overview" section at the top of your results, which summarizes the findings and gives you a response similar to what you might get with other chatbots. It gives users a good mix of both an AI-generated response to their questions and the conventional link-based results some people may prefer. The company is adapting to changes related to AI, and I believe it's in a good position to benefit from them. Google's brand has become synonymous with search, and there's much more trust there than with new and upcoming chatbots, where users may have doubts about accuracy. It's been more than two years since ChatGPT arrived on the scene, and there hasn't been a sharp decline in Google's ad business to suggest that it's in trouble. Instead, the business continues to grow. While it may lose some business as a result of AI in the future, the tech company can also make its searches better with Gemini, not only on Google Search but on YouTube as well. Alphabet's business is facing a lot of questions, especially with respect to search. AI is changing the game, and last year a judge found that Google has had a monopoly on search. More recently, it was also found to be monopolizing the online ad market. All this negative press has weighed on the stock, which today trades at just 16 times its estimated future earnings (based on analyst expectations). That's a fairly low valuation for a business that has generated significant growth over the years, but investors are clearly worried about its growth prospects in the long run. However, at such a low valuation, I think investors are well compensated for the risk that comes with the stock, especially since Alphabet isn't exactly standing still. AI introduces some new challenges, but it's creating opportunities as well. Provided that you're willing to hang on and be patient, Alphabet can still be a good long-term buy.

Apple and Google Investors Fret as ChatGPT Gains Search Ground | PYMNTS.com

That's according to a report Saturday (May 10) by Seeking Alpha, which said that Google's shares fell 8% last week when an Apple executive said that searches originating from Google's search engine in Apple's Safari browser fell for the first time last month. That executive, Apple senior vice president of services Eddy Cue, revealed that milestone while giving testimony in a Justice Department lawsuit against Google. He attributed the decreased searches to the increasing popularity of AI-based search offerings like OpenAI's ChatGPT. Cue also said Apple is considering adding AI search engines like Perplexity to Safari, where Google now dominates thanks to an ongoing revenue-sharing partnership with Apple. The report noted that a pivot to AI will impact both Google and Apple, as that revenue-sharing agreement generated $20 billion for the latter company in 2022. Google lost close to $150 billion in market capitalization following Cue's testimony, while Apple's shares dropped around 1%. The report also included comments from analysts who argued the rise of AI-powered search poses a threat to both companies. "Although some smartphone users may not regard AI features as very important, the times are changing, and Apple has to cater to the growing demand for consumer AI features," analyst Dilantha De Silva said. And analyst Nexus Research contended that Cue's statements on Google show the company's main business is in danger. "While Google is also in talks with Apple to integrate its Gemini assistant with Siri, Alphabet is unlikely to enjoy the "default" status that it has enjoyed for many years with Google Search on iPhones, given that Apple is also in talks with other AI rivals like Perplexity," Nexus said. Meanwhile, OpenAI is making a play for the consumer market by recruiting Instacart CEO Fidji Simo to run its applications business, PYMNTS wrote last week, arguing this signifies that the company is "more than just an AI model builder." "OpenAI clearly wants to own the consumer platform," Julia Huang, founding partner at Vesey Ventures, told PYMNTS. "They have a great shot at doing it and Fidji's experience at Instacart in bringing together merchants and consumers would be really valuable." Huang added, "The challenge to Google is clear already in search," since people have been moving to AI chatbots for searches. "I think this will be a play to close the loop around the whole transaction."

Google shares plunge after Apple executive's court testimony

Shares in Google parent Alphabet plunged more than eight per cent on Wednesday after Apple executive Eddy Cue testified in federal court that Google's search traffic on Apple devices declined last month for the first time in over two decades. Cue, Apple's senior vice president of services, told the Washington antitrust trial that Google was losing ground to AI alternatives like ChatGPT and Perplexity. His revelation that this decline "has never happened in 22 years" sent shockwaves through Wall Street, wiping more than US$170 billion from Google's market capitalization in a single trading session. The testimony came during a pivotal trial where District Judge Amit Mehta will determine remedies for Google's previously ruled illegal search monopoly. The case, ongoing since 2020, has exposed Google's practice of paying Apple tens of billions of dollars annually to remain the default search engine on Safari browsers and Apple smartphones. Investors were further unsettled when Cue suggested Apple might soon offer AI alternatives as default search options on its devices, heightening concerns that Google's advertising revenue could face serious threats from AI competitors. With the three-week trial set to conclude Friday, government attorneys are pushing Judge Mehta to order Google to divest its Chrome browser. They argue that AI technologies will only strengthen Google's dominance by leveraging its vast data resources across products like Maps, YouTube, and Chrome to stifle competition. However, Cue's testimony bolstered Google's defense that AI is already disrupting its search dominance, with chatbots now posing legitimate threats to its business model. When Judge Mehta issues his ruling in August, he could end Google's default search agreements with Apple and others -- a prospect that Cue told the court he was "losing sleep" over, with potential revenue losses impacting Apple's product development and operating system investment. Alternatively, Mehta might order Google to share its search data with competitors, which CEO Sundar Pichai warned would effectively amount to a "de facto divestiture of search." As a counter offer, Google proposes a more limited remedy that would allow it to continue paying for default placement of its search engine, but with an annual renegotiations and greater freedom for smartphone manufacturers to choose which Google apps to install on their devices. The Google case represents just one of five major tech antitrust actions currently pursued by the U.S. government, with Meta facing similar scrutiny in the same courthouse. Google recently lost a separate case regarding its ad technology business and may face additional divestitures, while Apple and Amazon are also expected to confront antitrust challenges in US courts.

Alphabet shares take $120 billion blow as search warnings blare

For more than a year, Alphabet Inc. shareholders have fretted over long-term risks posed by artificial intelligence to the company's money-printing search business. This week the threat became much more immediate. Court testimony from an Apple Inc. executive on Wednesday revealed that the iPhone maker is exploring adding AI services to its web browser for which Google now pays an estimated $20 billion a year to be the default search engine. Potentially more worrisome: searches on Apple's Safari fell for the first time last month, according to Eddy Cue, Apple's senior vice president of services. The revelations implied that queries fielded by rivals like OpenAI and Anthropic already may be eating into Google search, which accounts for more than half of the parent company's revenue and the vast majority of profits. Alphabet said in a subsequent blog post that search queries continue to rise, including those coming from Apple users. The comments helped arrest the selloff that saw the shares close down 7.3 per cent on Wednesday. But Alphabet is still on pace for a weekly decline of about 6 per cent and $120 billion drop in market value. "The basic issue is, will Alphabet lose its cash cow?" said Art Hogan, chief market strategist at B. Riley Wealth Management. "This is the first time Alphabet has really seen competition in search since the category was originated, and we're already seeing chinks in the armor." Fears that Alphabet is falling behind in AI have resulted in multiple selloffs since ChatGPT's debut in late 2022; in February 2023, for example, the stock sank on concerns about the accuracy of its AI chatbot. However, it has shown an ability to rebound off those losses, and up until Wednesday, Alphabet had been on an upswing. The shares rallied in the days following its earnings report that showed its search advertising business remained strong in the first quarter, which ended on March 31. The size and speed of Alphabet's selloff shows how nervousness about the risks of disruption from AI -- even for a company with formidable talent in the field -- is overshadowing everything else and making it difficult for investors to value the tech giant. Alphabet has long traded at a discount to megacap peers like Microsoft Corp. But that gap has widened over the past year amid worries the YouTube owner is falling behind in AI. At the close on Wednesday, Alphabet shares were priced at 15 times profits projected over the next 12 months, compared with an average of 21 times over the past decade, according to data compiled by Bloomberg. Microsoft is priced at 30 times projected profits, compared with an average of 26. The problem is that the greater competition in search could put future profits at risk, according to B. Riley's Hogan. "We don't know how much share it might lose, or how quickly," he said. "That means we can't be confident in the earnings part of the P/E multiple." An Alphabet representative declined to comment further. Alphabet's market share seems to be holding up. According to the latest Statista data, which is from March, Alphabet has about 89.7 per cent of worldwide market share for search engines. That compares with 92.9 per cent share in January 2023, just after ChatGPT's release. Most analysts on Wall Street remain bullish on Alphabet. More than 80 per cent of the 76 analysts tracked by Bloomberg who cover the company have buy ratings. While that's below other megacaps -- Microsoft, Amazon.com Inc., and Meta Platforms Inc. are all rated buy by 90 per cent or more of analysts -- Alphabet trades nearly 30 per cent below the average analyst price target, a higher return potential than the others. Evercore ISI's Mark Mahaney said that even though Google search volume growth has slowed, revenue expansion remains consistent. In a research note published on Thursday, he advised clients to buy shares in the wake of the drop. However, some are getting more cautious. Current estimates calling for 2025 net income of $115 billion could be overly optimistic, according to Melius analyst Ben Reitzes. "Given the April trends indicated in Cue's comments, paid clicks could be getting worse," he wrote in a research note on Wednesday. "In our experience, this stuff happens quickly."

Alphabet stock falls amid Apple AI search plans By Investing.com

Investing.com -- Alphabet (NASDAQ:GOOGL) shares fell 5% following reports that Apple (NASDAQ:AAPL) is considering the implementation of an AI search feature in its browser, potentially challenging Google's dominance in search. The decline comes as Apple's senior vice president of services, Eddy Cue, revealed that searches in the company's browser experienced a decline for the first time in April. Cue also mentioned that Apple is actively exploring the addition of AI search capabilities to its browser, sparking concerns over Alphabet's future revenue share from search. These comments suggest that Apple may be looking to reduce its reliance on Google's search engine, potentially impacting Alphabet's ad revenue. Cue's remarks, which were first reported by Bloomberg, emerged during a trial over Google's search practices. The trial has brought to light Apple's consideration of other search providers like Perplexity and Anthropic as possible alternatives. This news has alarmed investors, as Google's search engine has been a significant source of revenue for Alphabet, and any shift in market dynamics could have substantial financial implications. While the full impact of Apple's potential move into AI search is yet to be seen, Alphabet's stock reaction reflects immediate investor concern over the company's ability to maintain its search-related revenue if Apple becomes a competitor in this space.

Google Stock Slides as Apple's AI Search Plans Revealed in Court | Investing.com UK

Apple's (NASDAQ:AAPL) senior vice president of services, Eddy Cue, revealed during court testimony that the company is actively exploring a shift toward AI-powered search in its Safari browser, causing Alphabet (NASDAQ:GOOGL) shares to plummet and raising questions about the future of the lucrative Google-Apple search deal. During testimony in the US Justice Department's antitrust lawsuit against Alphabet Inc., Apple's Eddy Cue made significant revelations about the company's search strategy. Cue noted that Safari browser searches declined for the first time last month as users increasingly turn to AI alternatives. He explicitly stated his belief that AI search providers like OpenAI, Perplexity AI, and Anthropic will eventually replace traditional search engines like Google. "There's enough money now, enough large players, that I don't see how it doesn't happen," Cue said regarding the transition from standard search to AI. He explained that even if AI search indexes need improvement, these new platforms offer features that are "so much better that people will switch." Apple already offers OpenAI's ChatGPT as an option in Siri and plans to add Google's (NASDAQ:GOOG) Gemini later this year. The company has also explored partnerships with Anthropic, Perplexity, DeepSeek, and Grok. While Cue indicated Apple will add AI search providers as options in Safari, he cautioned they "probably won't be the default" yet. The heart of the Justice Department's case centers on the estimated $20 billion annual deal making Google the default search engine in Safari. Despite his enthusiasm for AI alternatives, Cue admitted he still believes Google should remain Safari's default search engine due to superior financial terms. He revealed he has "lost sleep over the possibility of losing the revenue share" from the Google agreement. Last year, the companies expanded their partnership to include Google Lens integration in the iPhone's Visual Intelligence feature, allowing users to analyze images using Google's AI. The court testimony also shed light on internal negotiations. Before selecting ChatGPT for Apple Intelligence in iOS 18, Apple conducted a "bake-off" with Google. According to Cue, Google had provided a term sheet with conditions "Apple wouldn't agree to and didn't agree to with OpenAI." Meanwhile, Apple's agreement with Microsoft's (NASDAQ:MSFT) Bing, a non-default option in Safari, was recently amended to operate on a year-to-year basis. News of Apple's potential strategic shift had immediate financial consequences. Alphabet shares tumbled as much as 7% on Wednesday, with the stock trading at $152.45, down $12.75 (7.72%) as of 12:11 PM EDT. The decline was significantly higher than the broader market, with trading volume reaching 29.4 million compared to an average of 22.2 million. Apple shares weren't immune either, slipping as much as 2.5% following Cue's testimony. The S&P 500 Index briefly turned negative, erasing earlier gains that had topped 0.5%. The market reaction underscores the significance of the Google-Apple search deal to both companies. Google's year-to-date performance now stands at -19.85%, substantially underperforming the S&P 500's -4.49%. Despite current volatility, analyst price targets for Alphabet remain optimistic, with an average target of $200.79 compared to the current trading price. *** Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Jefferies: Google stock sell-off after Apple exec comments was an 'overreaction' By Investing.com

Investing.com -- Google stock fell sharply on Wednesday following comments from Apple's Senior Vice President of Services, Eddy Cue, during his testimony in the Department of Justice's antitrust case against the search giant. Cue said that search volume in Apple's (NASDAQ:AAPL) Safari browser declined in April for the first time in over two decades and suggested that AI-driven platforms like Perplexity, OpenAI, and Anthropic could become viable alternatives to traditional search engines. Although Cue emphasized that Google should remain Safari's default, the remarks sparked a selloff, wiping out $155 billion in market capitalization from Alphabet Inc Class A (NASDAQ:GOOGL), whose stock dropped 7.26%. Commenting on this, Jefferies analysts believe the share price drop was an "overreaction." "We believe GOOGL -7% reaction to Apple exec's comments at antitrust trial is overdone," analysts led by Brent Thill said in a note, arguing that Google's AI advancements and broad search ecosystem are being overlooked. They highlighted the rapid adoption of AI Overviews, which now attract more than 1.5 billion monthly active users, and noted that monetization remains similar to traditional search, with potential for further gains. Jefferies also pointed out that Safari represents only part of the search market. Chrome holds 66% of global browser share compared to Safari's 17%, and iOS accounts for just 18% of operating systems. Meanwhile, daily active users of the Google app on iOS rose 15% year-over-year in April, "showing growth in users who go directly to Google for searches," analysts said. "Considering Google's substantial payment to Apple to be its default search provider, it is logical that Apple might highlight data points supporting the narrative that Google is not anti-competitive in search, citing risks of AI providers, which could benefit Google's case in appealing against claims of anti-competitive behavior," they added. Google's core search business remains strong, analysts note, with first-quarter revenue up 10% year-over-year, accelerating from single-digit growth in 2023. AI Overviews, now used by over 1.5 billion users monthly, and visual search via Lens have shown continued momentum. According to April 2025 StatCounter data, Google still commands around 90% of global search engine market share, including 94% on mobile and 79% on desktop. Jefferies views Alphabet's current valuation as attractive. The stock trades at 9.7x next-twelve-month EV/EBITDA -- just above its 10-year trough of 9x and below the historical average of 12x.