May 8th – Google, a part of Alphabet (NASDAQ:GOOG), has recently found itself on the defensive after testimony from Apple’s Eddy Cue highlighted the rising impact of AI alternatives in the Safari browser. This situation is significant, given that Google has invested $20 billion to maintain its status as Safari’s default search engine, positioning Apple as a key partner in the search landscape.
To ease investor concerns, Google issued a blog post asserting that “overall query growth” remains intact, bolstered by increased traffic from Apple devices and growing engagement with features like voice search and Google Lens.
The stakes are high for Google. It’s not just about appeasing Apple; the company is also facing antitrust scrutiny from the US Department of Justice regarding its dominance in search and digital advertising.
After Apple’s remarks, Google’s stock dropped by 7%, though it bounced back slightly, showing a 1.5% recovery in morning trading. However, the stock is still nearly 10% down for the year, reflecting broader market uncertainties.
This article was initially published on Glufocus.
