Google stock tumbled on Wednesday after a top Apple executive said in a court hearing that Google searches on its mobile Safari browser in April fell for the first time. Eddy Cue, Apple's senior vice president of services, made the comment at an antitrust trial involving Google-parent Alphabet's internet search business.
Cue added that Apple was actively exploring adding AI search capabilities to its browser, potentially adding partners like OpenAI, Perplexity and Anthropic.
Late Wednesday Alphabet issued a statement saying" "We continue to see overall query growth in Search. That includes an increase in total queries coming from Apple's devices and platforms."
Google Stock Reaction Overdone?
Wall Street analysts reacted to the big Google stock sell-off.
"We also point out that Apple — which was denied the right to intervene in the Google suit early this year — has incentive for Google to appear weaker in search, while also emphasizing increased search competition and the significant impact to Apple's business," said JPMorgan analyst Doug Anmuth in a report.
Further, Google pays Apple $20 billion annually to be the default search engine on iPhones.
For Alphabet shareholders, the internet search business has been a worry amid new artificial-intelligence-driven competition from OpenAI's ChatGPT and others. ChatGPT delivers answers to search queries, while Google's business model has been based on providing web links.
Further, Google began deploying AI Overviews in the U.S. in mid-2024, with conversational summaries topping links for many search queries. The AI Overviews system uses Google's in-house Gemini AI model.
"We believe the Google (stock) reaction to Apple executive's comments at antitrust trial is overdone," said Jefferies analyst Brent Thill in a report. "While we agree there are emerging alternatives to Google search, Google is not standing still — with AI Overviews ramping and Gemini AI innovating rapidly."
Google Antitrust Ruling
Meanwhile, Google stock tumbled 7.3% to 151.38 on Wednesday. Apple stock fell 1.1% to 196.25. On the stock market today, both Google stock and Apple gained in early trading.
The Department of Justice has an ongoing antitrust case vs. Google involving the internet search business.
Federal judge Amit Mehta last year ruled that Alphabet illegally maintained a monopoly over online search services and prevented rivals from developing their own products.
A key part of the ruling centered on payments that Google makes to Apple to be the default search engine on iPhones. Cue made his comments at a court hearing to discuss possible antitrust remedies, Bloomberg reported.
Judge Mehta is expected to decide on Google penalties by August. The DoJ has requested that Google be forced to sell its Chrome browser and take other measures, possibly involving Apple.
Alphabet Chief Executive Sundar Pichai last week said he hopes to forge a licensing deal with Apple for its artificial intelligence engine Gemini.
Google Stock Technical Ratings
Google stock has retreated 20% in 2025 while Apple stock is down 22%.
Alphabet stock holds an IBD Composite Rating of 81 out of a best-possible 99, according to IBD Stock Checkup.
IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
Google is among the top artificial intelligence stocks to watch.
Google stock holds an Accumulation/Distribution Rating of C. That institutional ownership rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
If you're new to IBD, consider taking a look at its trading system, especially for bull and bear markets, the basics of technical analysis and recognizing base patterns. One great resource is Investor's Corner. Give thought to monitoring updates to IBD stock watch lists.
IBD offers a broad range of growth stock lists. Amid market volatility, here are some useful strategies. Meanwhile, IBD doesn't put much weight on P/E ratios and other valuation metrics. On the other hand, here are some time-tested trading rules.
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