Alphabet Stock Nosedives: It's Actually Much Worse Than You Might Think

Summary

• Recent remarks from an Apple executive that Searches through the Safari browser fell in April are weighing heavily on Alphabet shares, confirming that its core business is under siege.
• It gets even worse considering that Google is also under regulatory pressure to open up its Android operating system (with over 72% market share) to third-party AI assistants and apps.
• Rivals like Perplexity, OpenAI and Anthropic are developing assistants that can integrate with other Android apps, undermining the usage of Gemini for personal tasks on-device and broader informational/ commercial queries.
• Smartphones are currently the most important form factor during this AI revolution, and Android is supposed to be a key distribution channel through which Google can sustain its moat.
• Google currently has a lower expected EPS growth rate than its main rivals, but is also cheaper based on the Forward PEG multiples.

Alex Wong

Google (NASDAQ:GOOG) stock plummeted recently following comments from Apple’s Senior Vice President of Services that Searches through the Safari browser fell for the first time in April. Before these remarks, investors were actually getting more optimistic on GOOG

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