Alphabet’s (GOOGL) Google argued artificial intelligence (AI) search hasn’t negatively impacted its search business. This declaration came after Apple’s (AAPL) Eddy Cue testified that searches on Safari had decreased since the rise in AI search alternatives. Google Search is the default search engine of Safari thanks to a $20 billion deal between the two companies.
According to a Google blog post, the company continues “to see overall query growth in Search.” It pointed out that this includes “an increase in total queries coming from Apple’s devices and platforms.” The search giant also added that voice and Google Lens searches have contributed to increased search use.
Google is trapped between a rock and a hard place with its search data. The company doesn’t want to appear as though it’s losing ground to AI, as this could negatively effect investor confidence. On the other hand, it’s entangled in an antitrust case with the Department of Justice over an alleged monopoly on search and strict control of online advertising.
How Does Google’s Search Conundrum Affect GOOGL Stock?
When Apple suggested that Google Search usage slipped in its testimony yesterday, Google shareholders took notice. This rattled investor optimism and resulted in a 7.26% drop. Now that Google has pushed back on those claims, GOOGL stock has started to recover with a 2.34% rally this morning. Investors will also note that the company’s shares are down 19.94% year-to-date as the trade war and economic uncertainty weigh on the stock.
Is GOOGL Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Alphabet is Strong Buy, based on 28 Buy and eight Hold ratings over the last three months. With that comes an average GOOGL price target of $198.79, representing a potential 31.32% upside for the shares.
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