Apple’s Impact on Google: Investor Reactions

After Apple unveiled its first search feature on its devices last month, investors Josh Brown and Joe Terranova, speaking on CNBC, expressed that the news casts a negative light on Alphabet Inc. (Google) and its stock performance.

Josh Brown, who leads Ritholtz Wealth Management, and Terranova, Senior Managing Director at Virtus Investment Partners, shared their insights on the implications for Google.

Josh Brown’s Perspective

Having sold all of his Google shares just last month, Brown described Apple’s announcement as “very significant” for Alphabet. He noted that the dual layers of internet advertising that Google and Meta have enjoyed for years now face an uncertain future. Historically, these companies jointly commanded about 70% to 80% of the internet advertising market.

Brown considered Apple’s statement to be a pivotal moment, emphasizing that it marked the first time he felt Google was directly competing in the core search market.

Joe Terranova’s Take

Terranova characterized Google’s search operation as its “cash cow” and a fundamental aspect of its business. He pointed out ongoing concerns that the tech giant hasn’t effectively addressed new competition in the search arena. He warned that Apple’s announcement indicates AI models are beginning to eat into Google’s market share.

“That’s a considerable issue, at the very least,” Terranova stated in conclusion.

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