Alphabet now down over 7.50%. Comments from Apple’s Cue send the stock tumbling lower | Forexlive

Apple’s SVP of Services, Eddy Cue, revealed that search and browser usage declined for the first time in April. In response, Apple is reportedly exploring the integration of AI-powered search capabilities into its browsers—a potential shift that poses a direct threat to Alphabet, which benefits from a lucrative revenue-sharing agreement with Apple for default Google searches on iOS devices.

Alphabet shares are taking a major hit on the news, falling $-13.65 or -8.41% at $149.50.

Technically, the initial selloff pushed the stock back below its 50-day moving average at $160.66, and more importantly, below the 38.2% retracement of the rally from the November 2022 low ($83.34) to the February 2025 high ($207.05) at $159.79. From its peak, Alphabet is now down 27.5%, and it has lost 20.71% year-to-date.

While the stock remains above the 2025 low of $140.53 (set on April 7), the next technical support levels to watch are:

There is room to roam to the downside.

The sharp move underscores growing investor concern as AI alternatives like ChatGPT continue to disrupt traditional search behavior.

This is a day of reckoning for Alphabet. They need to evolve. They will not go away but the cash cow is hurting and the data seems to be supporting it.