Trade Tracker: Steve Weiss trims Alphabet

Core Viewpoint - Alphabet is experiencing significant developments, including a new browser announcement from OpenAI and ongoing negotiations with Anthropic for additional computing power, indicating management's belief in future growth despite challenges in their search business [1][3][4]. Company Developments - The stock of Alphabet is currently performing well, reflecting investor confidence despite concerns about its search market share [2][3]. - Alphabet's management is actively investing in other business areas, such as cloud services, which are expected to drive future growth [4][5]. Market Challenges - There are concerns regarding a potential decline in Alphabet's search market share, with estimates suggesting a possible decrease of 20-25% this year [6][12]. - The competitive landscape is intensifying, with new AI-driven search mechanisms emerging, posing a threat to Alphabet's dominance in search [12][14]. Financial Considerations - Alphabet has substantial cash flow, which could support share buybacks and maintain higher earnings per share (EPS) even if search revenues decline gradually [17]. - The company's capital expenditures (capex) are heavily directed towards AI investments, which may limit the funds available for share buybacks [18][19].