Apple Blindsides Alphabet’s Search Business

Alphabet stock (GOOG) dropped more than 7% on Tuesday, a sharp decline that now has the stock officially breaking down on both fundamental and technical fronts.

The move followed a Bloomberg report that Apple (AAPL) may be preparing to challenge Alphabet’s dominance in search.

According to Bloomberg, Safari searches actually declined last month for the first time on record. The news came from Apple’s Senior Vice President of Internet Software and Services, Eddie Cue, during recent testimony in the DOJ’s antitrust lawsuit against Alphabet.

Cue also said he believes standard search engines will eventually be replaced by AI-powered alternatives.  These tools could live inside Safari, outside the reach of Alphabet’s $280 billion-a-year search empire.

The implications are huge.

Alphabet Chrome is the most dominant browser globally with more than 63% of total market share. Safari holds the #2 spot with a sizable 20%. On mobile, Safari leads the U.S. browser market with a 50.3% share, compared to 43.2% for Chrome.

And when it comes to Apple devices - where Safari is the default - the numbers are even more lopsided.

Safari controls more than 50% of the mobile tablet market and handles over half of Alphabet’s entire search business.

In short, if Apple builds a serious AI search engine into Safari, it could rip a gaping hole in Alphabet’s most valuable cash cow.  That would result in a large hit to Alphabet advertising revenue.

To make matters worse today, both tech giants are facing added pressure from Tariff headlines. Apple indicates it will see a spike in iPhone and hardware prices of 31–34% resulting from tariffs.

That’s another layer of consumer and regulatory headwind at exactly the wrong time for both companies.

The Technical Breakdown Is Clear

Tuesday’s selloff wasn’t just emotional - it was technical. Alphabet’s stock fell through several key levels that signal more downside ahead:

• Support Breach at $150: GOOG had bounced from the $150 level twice over the last month. Tuesday’s close below this round-numbered support level opens the door for further selling pressure.
• Below a Bearish 50-Day: The stock is now decisively below its 50-day moving average, which turned bearish back in late February. That trendline typically guides short-to-medium-term price direction, and right now, it’s flashing red for the next 4-6 weeks.
• Death Cross Confirmed: Earlier this April, Alphabet joined other Nasdaq 100 names like NVIDIA (NVDA), Amazon (AMZN), and Meta (META) in printing a Death Cross - a technical pattern where the 50-day moving average crosses below the 200-day. This signals accelerating downside momentum.
• Long-Term Trend Failure: Perhaps most ominously, Alphabet is now trading below its 20-month moving average. That officially places the stock in a long-term bear market. The last time this happened was May 2022—and shares went on to lose another 27% before bottoming in late 2023.

Bottom Line

Apple’s move into AI search isn’t just a jab - it’s a potential knockout blow to Alphabet’s core business model. And now that technicals have flipped bearish across the board, GOOG stock may be staring down a repeat of its last multi-month slide.

Alphabet shares maintain a bear market outlook with a price target of $125.