From Yahoo Finance: 2025-05-09 16:23:00

Alphabet Inc. faces immediate threat from Apple Inc. exploring AI services for its web browser, potentially impacting Google’s $20 billion annual payment for default search engine status. Alphabet shares drop nearly 7%, erasing $138 billion in market value, amid fears of competition in search and disruption from AI.

Alphabet’s struggles in AI have led to stock selloffs, despite rebounding from previous losses. The company’s recent selloff highlights concerns about disruption from AI overshadowing its other strengths, making it challenging for investors to value the tech giant against competitors like Microsoft Corp.

While Alphabet’s market share in search engines remains steady at around 89.7%, concerns about future profit risks due to increased competition are growing. Analysts are divided on the company’s outlook, with some remaining bullish while others caution that estimates for future earnings could be optimistic.

Panasonic plans to cut 10,000 jobs to boost profitability, while China’s leading chipmaker, Semiconductor Manufacturing International Corp., warns of potential sales decline. Taiwan Semiconductor Manufacturing Co. sees a 48% revenue increase in April as electronics firms rush to acquire essential components before global tariffs take effect.

Apple Inc. is developing new chips for smart glasses, more powerful Macs, and AI servers. Expedia Group Inc. lowers full-year outlook due to weak travel demand. Earnings due Friday include PAR Technology, Telus, Gogo, Cineplex, and AMC Networks.

Read more: Alphabet Shares Take $138 Billion Blow as Search Warnings Blare