Alphabet's Trading Volume Drops 40.96% to $35.31 Billion Amid Apple's AI Search Threat

On May 9, 2025, Alphabet's trading volume reached $35.31 billion, marking a 40.96% decrease from the previous day. The company's stock, Google C (GOOG), fell by 0.88%.

Alphabet's stock price experienced a significant decline following the revelation of Apple's potential strategic shift towards AI-powered search options. This news had an immediate impact on Alphabet's shares, which tumbled as investors reacted to the potential loss of Google as the default search engine on Apple devices.

Apple's executive Eddy Cue testified in a federal antitrust case, revealing that Apple is exploring AI-powered alternative search options for Safari. This move could potentially replace Google as the default search engine, posing a significant threat to Alphabet's revenue stream. Additionally, Cue mentioned that searches on Safari declined in April for the first time ever, attributing this to users increasingly turning to AI bots like ChatGPT and Perplexity for their search needs.

The changing landscape of consumer behavior, with a projected 25% decline in the use of traditional search engines by 2026, adds to the uncertainty surrounding Alphabet's future. Despite these challenges, Alphabet's financials remain robust, with total revenue rising 12% year on year to $90.2 billion in Q1 2025. The Google Search category grew from $46.2 billion to $50.7 billion, and the company's AI Overview feature now has 1.5 billion users per month, boosting engagement.

Alphabet's diversification into YouTube ads, subscriptions, and Google Cloud continues to grow strongly, offering optionality and reducing reliance on search revenue. The company's Waymo robotaxi business is also expanding, with over 250,000 paid trips every week. Despite the ongoing risks from the antitrust probe and a changing search landscape, Alphabet's stock is trading at just 15 times its expected earnings for 2026, making it an attractive investment opportunity at $152.