Alphabet(US:GOOGL) 智通财经网·2025-05-09 12:21Core Viewpoint - Google faces increasing threats to its search engine business from AI competitors, particularly after Apple revealed plans to integrate AI services into its Safari browser, which could impact Google's default search engine status and revenue stream [1][3]. Group 1: Market Dynamics - Apple is exploring AI integration in its Safari browser, which could jeopardize Google's $20 billion annual revenue from being the default search engine [1]. - There has been a notable decline in search volume for Safari, marking the first drop in history, indicating potential market share loss for Google [1]. - Google's search engine business accounts for a significant portion of its total revenue, making it a critical area of concern for investors [1]. Group 2: Financial Performance - Google's stock price fell by 7.3% on the day of the news, with a cumulative decline of 6% for the week, resulting in a market capitalization loss of $120 billion [1]. - The expected price-to-earnings ratio for Google over the next 12 months is 15, below the historical average of 21 over the past decade, while Microsoft's is significantly higher at 30 [5]. - Despite the recent downturn, Google's search engine advertising business showed resilience, contributing to stock price increases prior to the recent drop [3]. Group 3: Analyst Sentiment - Over 80% of analysts maintain a "buy" rating for Google, although this is lower than the ratings for Microsoft, Amazon, and Meta [6]. - Analysts suggest that despite slowing search volume growth, Google's revenue growth remains robust, with some recommending buying on dips [6]. - Caution is expressed by some analysts regarding overly optimistic profit expectations for 2025, indicating potential volatility in market share and profitability [6][7].