Alphabet Share Price Under Pressure Amid Apple AI Search Engine Rumours

Alphabet Inc. (NASDAQ: GOOGL), the parent company of Google, is facing renewed investor uncertainty following reports that Apple may remove Google Search from Safari and develop its own AI-powered search engine. This potential shift could significantly impact Alphabet’s future revenue streams, especially if the company fails to compensate for the lost traffic through other monetisation channels.

As of pre-market trading, Alphabet shares are priced at approximately $154.97, having rebounded around 5% after dropping to an intraday low of $147.89 on Wednesday. However, this short-term bounce may not reflect a sustained recovery. Investor sentiment remains cautious due to broader macroeconomic concerns, including ongoing tariff uncertainties and the potential loss of Apple as a key distribution partner.

Technical Analysis: Is Another Drop Likely?

A review of Alphabet’s weekly stock chart reveals a pattern reminiscent of August 2022, where an apparent recovery was followed by a significant downturn of nearly 30%. If history were to repeat itself, Alphabet shares could potentially decline to around $130—a level that many analysts and investors might consider attractive given the company’s strong cash flow and long-term growth projections.

MACD Indicators Signal Caution

Looking at the MACD (Moving Average Convergence Divergence), Alphabet’s stock appears slightly oversold. However, historical data suggests there may still be room for further downside movement. While past performance is no guarantee of future results, technical indicators currently favour a cautious approach in the short term.

Final Thoughts

The uncertainty surrounding Apple’s possible development of an AI search engine, combined with macroeconomic headwinds, casts a shadow over Alphabet’s share price outlook for the summer. Investors should closely monitor developments, particularly any official announcements from Apple or Alphabet, as these could materially affect market sentiment and stock performance.

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