From Nasdaq: 2025-05-11 10:15:00

Alphabet (NASDAQ: GOOG, NASDAQ: GOOGL) faces a potential threat from Apple (NASDAQ: AAPL) introducing AI-powered web search tools like OpenAI and Perplexity for Safari users. This possibility caused Alphabet’s shares to drop by 8% on Wednesday.

While the market reacted bearishly, the threat may be overblown. Apple’s plans were mentioned during a trial and aren’t official, with no specific timelines provided.

Google’s dominance in search, with 90% market share, and Safari’s limited browser use pose challenges to Apple’s potential search offerings. Safari’s user base is modest, and most iPhone users still prefer Google for searches.

Google’s integration into daily internet usage, with services like Gmail, Google Docs, and YouTube, showcases its importance. Google’s AI-powered search already has a vast user base, with 1.5 billion monthly users in Q1.

The impact of Apple’s possible alternative search tools on Alphabet’s search business may be minimal. The dominance and integration of Google’s services make it unlikely for users to shift away from Google’s search engine.

Despite concerns, the potential threat from Apple is not significant enough to avoid investing in Alphabet. The company’s strong position and widespread usage make it a solid investment choice.

Investors should consider Alphabet’s resilience and strong market position before making investment decisions. The Motley Fool analyst team has identified other promising stocks for potential investments, offering opportunities for significant returns.



Read more at Nasdaq: Here’s Why I’m Not Too Worried for Alphabet Despite Apple’s Potential New AI-Powered Safari Search