By Angela Palumbo
Alphabet stock fell sharply in late morning trading on Wednesday after Bloomberg reported that an Apple executive's testimony pointed to artificial intelligence taking market share from traditional search.
Apple's Senior Vice president of Services Eddy Cue testified in a Department of Justice lawsuit against Google that searches in Apple browsers fell for the first time as people turn to AI for their search queries, according to Bloomberg.
This comes as the DOJ investigates the longstanding partnership between Apple and Alphabet, where Apple uses Google as its default search partnet.
Barron's has reached out to Apple, Alphabet, and the DOJ for comment.
Shares of Alphabet were down 6.9% to $152.09 as the testimony fueled investor concerns that Google will lose its crown as the king of search as competitors like ChatGPT, Perplexity AI, and Meta AI grow in popularity.
This is breaking news. Please check back for more updates and analysis.
Write to Angela Palumbo at angela.palumbo@dowjones.com
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May 07, 2025 11:48 ET (15:48 GMT)
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