From Nasdaq: 2025-05-14 06:00:00

Apple (NASDAQ: AAPL) relies heavily on a $20 billion payment from Alphabet (NASDAQ: GOOG, NASDAQ: GOOGL) to make its search engine the default on iPhones. This profit source is critical, with Apple’s VP admitting concern over losing it, highlighting the potential impact on Apple’s stock and net income.

Alphabet’s $20 billion payment to Apple is at the center of an ongoing legal battle over Google’s search engine monopoly. The payment secures Google’s dominance, but future changes in AI-powered search could shift the landscape, potentially jeopardizing this lucrative revenue stream for Apple.

Losing the $20 billion payment from Alphabet could lead to a 20% drop in Apple’s net income, affecting the stock price significantly. With Apple’s stock already trading at premium valuations, any setbacks could trigger a crash. Investors are advised to consider alternative tech stocks with fewer challenges and lower price tags.

Investors looking to buy Apple stock should be aware of the risks associated with its premium valuation and potential growth challenges. The Motley Fool’s Stock Advisor team has identified 10 other stocks with strong growth potential, offering investors the opportunity for significant returns. Consider diversifying your portfolio with these options to mitigate risks.



Read more at Nasdaq: 20 Billion Reasons Why Apple Stock Could Be Headed For a Crash