GOOGLE STOCK PLUMMETS $160 BILLION AFTER APPLE EXECUTIVE HINTS AT SAFARI SEARCH SHIFT

Alphabet, Google’s parent company, experienced a sharp 7.3% drop in its stock price, erasing approximately $160 billion in market value, following testimony from an Apple executive suggesting a potential decline in Google’s dominance as the default search engine on Safari, as reported this week.

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The executive, Eddy Cue, revealed during an antitrust trial that Safari searches declined for the first time in April 2025, attributing the shift to users increasingly turning to AI-powered search tools.

For investors, tech industry observers, and consumers, the development raises questions about Google’s long-standing search market leadership and its $1.92 trillion valuation.

Cue’s testimony, part of a U.S. Department of Justice case against Google’s search monopoly, indicated Apple is exploring AI search options from providers like OpenAI and Perplexity for Safari, potentially altering its $20 billion annual agreement with Google to remain the default search engine.

Alphabet’s shares closed at $154.83, down from $151.38 the previous day, reflecting investor concerns about future ad revenue, which relies heavily on Safari’s 36% contribution to Google’s mobile search income.

The ruling, combined with ongoing antitrust scrutiny, underscores the competitive threat posed by AI-driven search innovations.

STOCK MARKET REACTION AND VALUATION LOSS

Alphabet’s stock fell 7.3% on May 7, 2025, reducing its market capitalization by about $160 billion, from $2.08 trillion to $1.92 trillion, based on real-time financial data. The decline, one of Google’s largest single-day drops, was triggered by Cue’s testimony, which highlighted a historic dip in Safari search volume. The stock closed at $154.83, with intraday trading ranging from a high of $155.73 to a low of $152.21, compared to the previous day’s close of $151.38.