Why Alphabet Inc. (GOOG) Nosedived on Wednesday

Angelica Ballesteros

Thu, May 8, 2025, 1:32 AM 2 min read

We precocious published an nonfiction titled Why These 10 Firms Nosedived Today. In this article, we are going to instrumentality a look astatine wherever Alphabet Inc. (NASDAQ:GOOG) stands against the different stocks.

The banal marketplace bounced backmost from the erstwhile day’s losses, with each large indices finishing higher arsenic investors cheered the cardinal bank's determination to support involvement rates unchanged.

On Wednesday afternoon, the Federal Reserve kept rates dependable astatine a scope of 4.25 percent to 4.5 percent, saying that it was not successful a hurry to chopped rates and could inactive “wait and see” the impacts of President Donald Trump’s tariff policies.

The Dow Jones rallied by 0.70 percent, the S&P 500 accrued by 0.43 percent, and the Nasdaq grew by 0.27 percent.

Beyond the large indices, bucked a broader marketplace optimism arsenic investors sold disconnected connected a bid of disappointing news.

To travel up with the list, we considered lone the stocks with a $2-billion marketplace capitalization and $5-million trading volume.

A laptop and telephone unfastened to Google's services successful an mundane setting.

Alphabet Inc. (NASDAQ:GOOG), relation of hunt motor elephantine Google, dropped its stock prices by 7.51 percent to adjacent astatine $152.80 apiece arsenic capitalist sentiment was dampened by quality that Apple Inc. was mounting its sights connected AI-powered hunt features for its Safari browser.

Speaking to the US Department of Justice’s antitrust proceedings against Alphabet Inc. (NASDAQ:GOOG), Eddy Cue, Apple’s elder vice president for services, said that Apple had nary volition of creating its ain hunt motor platform, but was “actively looking” to integrate AI tools into Safari.

The remarks fueled concerns that Alphabet Inc.’s (NASDAQ:GOOG) largest revenue-generating concern could beryllium dragged down by the emergence of generative AI tools.

According to Cue, idiosyncratic inquiries into Safari had already dropped for the archetypal clip past period arsenic they progressively turned to large-language models for answers.

Currently, Siri lone offers OpenAI, but Cue said that Apple is looking to adhd different models successful the future, including Gemini.

Overall GOOG ranks 10th connected our database of Wednesday's worst performers. While we admit the imaginable of GOOG arsenic an investment, our condemnation lies successful the content that AI stocks clasp greater committedness for delivering higher returns and doing truthful wrong a shorter clip frame. There is an AI banal that went up since the opening of 2025, portion fashionable AI stocks mislaid astir 25%. If you are looking for an AI banal that is much promising than GOOG but that trades astatine little than 5 times its earnings, cheque retired our study astir this cheapest AI stock.