The Alphabet share $GOOG (+4.87%) (Google) recorded a significant drop of 6.9% to USD 152.09 on May 7, 2025. This fall in the share price was largely triggered by the testimony of Eddy Cue, Apple's Senior Vice President of Services, in the context of ongoing antitrust proceedings by the US Department of Justice (DOJ) against Google. Cue reported that the number of search queries via Apple browsers $AAPL (+7.73%) was declining for the first time due to the increasing use of AI-based tools such as ChatGPT, Perplexity AI and Meta AI. This development raises concerns among investors about Google's future dominance in the search engine business.
In addition, regulatory uncertainties are increasing the pressure on the share. The DOJ is currently reviewing the long-standing partnership between Apple and Google, in which Google acts as the default search engine on Apple devices. Possible measures could affect Google's ability to maintain search contracts and use exclusive data.
Despite these challenges, Alphabet showed solid growth in its latest quarterly figures. Revenue rose by 11.8% to 89.97 billion US dollars and earnings per share increased to 2.84 US dollars. The company also announced a share buyback program worth 70 billion US dollars.
Conclusion: The current decline in Alphabet's share price is mainly due to concerns about a possible shift from traditional search queries to AI-based tools and regulatory uncertainties. Despite positive financial results, market sentiment remains cautious as investors weigh the long-term impact of these developments.
of these developments.