🧾 Current Stock Snapshot
- GOOG: $159.19 (-3.64%)
- GOOGL: $156.89 (-3.88%)
- Market Cap: $1.88 Trillion
- P/E Ratio: 16.91
- EPS: $9.15
🔍 Why Is Google Stock Down?
Alphabet’s stock experienced a significant drop following revelations from Apple’s Senior VP of Services, Eddy Cue, during a U.S. Department of Justice antitrust trial. Cue testified that Apple is exploring AI-powered search alternatives, such as ChatGPT, Perplexity AI, and Anthropic, to potentially replace Google as the default search engine on Safari.
This development raises concerns about Google’s dominance in the search engine market, especially considering the $20 billion annual payment Google makes to Apple to remain the default search engine.
🧠 Investor Concerns
The possibility of Apple shifting away from Google Search could significantly impact Alphabet’s advertising revenue, a major component of its business model. Additionally, the rise of AI-powered search tools presents a new competitive landscape that could challenge Google’s market share.
📈 Looking Ahead
While Alphabet continues to invest in AI and other technologies, the potential loss of its default status on Apple devices and the increasing competition from AI search tools are factors that investors should monitor closely.
❓ Frequently Asked Questions
What is the current price of GOOG and GOOGL stocks?
As of May 7, 2025, GOOG is trading at $159.19, and GOOGL is at $156.89.
Why did Alphabet’s stock drop recently?
The stock declined due to Apple’s exploration of AI-powered search alternatives, potentially impacting Google’s default search engine status on Safari.
How much does Google pay Apple to be the default search engine?
Google reportedly pays Apple around $20 billion annually for this privilege.
What are the potential alternatives Apple is considering?
Apple is looking into AI search tools like ChatGPT, Perplexity AI, and Anthropic.
