Alphabet stock slides 7.7% after AI search threat triggers largest daily drop
Alphabet stock plunges 7.7% as antitrust case raises AI search concerns.
Google parent Alphabet Inc. suffered its sharpest single-day stock decline of 2025 on Wednesday, May 7, after testimony in a federal antitrust case raised fresh concerns over the future of its search dominance.
The stock plunged nearly 20% intraday, falling from $164 to a low of $147.80, before closing at $151.30, down 7.7% on the day. The selloff was accompanied by a surge in volume, reflecting investor anxiety about competitive threats to Google’s core advertising business.
The trigger was testimony from Apple executive Eddy Cue, who told a Department of Justice court that Safari browser searches had declined for the first time as users increasingly turned to AI tools for answers. His remarks intensified investor concerns about disruption in Google’s search model, given that OpenAI, Grok, and Perplexity are gaining traction as alternatives.
Alphabet stock slips through 20-day and 50-day EMAs, triggering bearish technical bias
Technically, the price collapse broke through multiple support levels, including the 20-day and 50-day EMAs. The steep selloff found support in the demand zone around $148.80 to $146 before buyers stepped in. A modest rebound followed and lifted the stock slightly in premarket trading on Thursday. Google stock price is currently quoted around $154.60, a 2% increase from Wednesday’s close.
GOOGL stock price dynamic (Feb - May 2025)
However, the path to recovery may face headwinds. The RSI on the daily chart has entered bearish territory near the 40 level, suggesting continued downside pressure. Immediate resistance lies at $156.50, while the 50-day EMA above at $158.80 could cap any short-term bounce. If sellers regain control, a break below the $146 support zone could open the door for a drop toward April’s low at $140.50.
Unless a strong reversal emerges, the technical bias and fundamental concerns point toward a fragile outlook for GOOGL stock in the sessions ahead. The outlook now hinges on how quickly Google can address the shifting landscape in online search and whether investors regain confidence in its long-term growth narrative.
Alphabet stock pulled back to $161.70 after a four-day rally lost steam. Lower trading volume confirmed weakening momentum as buying interest faded.
