Alphabet Stock (GOOGL) hit in trading session on Wednesday after Apple announced its investigation Unique AI Search Engine. Eddy Cue, Apple’s Senior Vice President of Services, made a disclosure yesterday, urging Alphabet’s shares to plummet by 7%. Queue also shared that Safari search volume declined for the first time in April for over 20 years, sparking concerns among both tech giant investors.
Apple and Google are currently weighing a $2 billion annual contract that will provide Google as the default for queries for Apple’s included browsers. However, the announcement has put a damper on the plan. Already nervous by the confusion in AI searches, investors wiped out roughly $155 billion from the Alphabet market capitalization in 24 hours. Currently, there is concern that the stock price could also fall below $150.
Alphabet (GOOGL) strains are below the simple 200-day moving average near the bottom of the 52-week range. The stock then recovered a little over 1% from Wednesday’s fall, but still fell 4% over the past five days. Most analysts have yet to propose panic sales, but concerns are still rising about Google.
Jeffries analysts say the selling could be exaggerated. In a memo released late Wednesday entitled “Don’t Count Google Search,” investment bank analysts argued that Safari’s shrinking share is a limited threat. While Apple’s browsers hold 17% of its global market share, Google Chrome commands 66%, with Alphabet offering a much larger footprint no matter what Apple does. Additionally, daily active users of the Google app on iOS are up 15% year-on-year. Search engines remain hot despite their fire.
Additionally, Alphabet’s first quarter 2025 revenue report provided better numbers than expected. For the first quarter, Alphabet reported earnings per share (EPS) of $2.81 against $90.2 billion in revenue. Analysts had expected an EPS of $2.01 against $89.1 billion in revenue, according to estimates from the Bloomberg Consensus. The company reported earnings per share of $1.89, with revenue of $80.5 billion for the same period last year. So it may not be the time to panic with alphabet stock yet.
