Google’s dominance in mobile search under threat as Apple explores AI-driven alternatives; market reacts sharply amid antitrust scrutiny.
New York, May 8, 2025 — Alphabet Inc. saw its share price nosedive over 7% on Wednesday, wiping out approximately $150 billion in market value, after reports emerged that Apple is planning to integrate AI-powered search capabilities directly into its Safari browser. Alphabet stock closed at $152.80, down 7.51% for the day.
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The drop follows testimony by Apple executive Eddy Cue during an ongoing antitrust trial, where he revealed that Apple is “actively looking at” reimagining its search strategy. Cue highlighted a notable decline in Safari-based searches for the first time last month, attributing the shift to users increasingly favoring AI tools over traditional search engines.
Alphabet’s core advertising business — particularly from iPhone users — could be significantly impacted by this shift. Google currently pays Apple an estimated $20 billion annually to remain Safari’s default search engine, a figure that reportedly accounts for nearly 36% of Google’s mobile search ad revenue.
In a statement, Google defended its position, citing continued growth in overall search queries, especially those using features like voice and visual search. “People are seeing that Google Search is more useful for more of their queries,” the company said.
Still, the news has rattled investors, as the potential disruption of Google’s search monopoly comes amid heightened antitrust scrutiny. The U.S. Department of Justice has already proposed measures, including banning Google from making such default deals, in its two ongoing lawsuits aimed at curbing the tech giant’s dominance.
Alphabet Share Performance Overview
- 1-Day: -7.51%
- 1-Month: +2.4%
- 6-Months: -16%
- Year-to-Date (YTD): -20%
- 1-Year: -12%
- 5-Year Return: +120%
Despite the recent slump, Alphabet has maintained a strong five-year performance, gaining 120% over the period. However, concerns are mounting as Apple’s AI ambitions could significantly reshape the search landscape.
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Alphabet, Google, Apple, AI search, Safari browser, Alphabet stock fall, Google search monopoly, antitrust lawsuit, Eddy Cue, Ro Khanna, US tech stocks, Apple AI integration, Google vs Apple, market cap loss, Alphabet earnings, Google ad revenue