Josh Brown Says Safari Browser Search Decline a ‘Watershed’ Moment for Alphabet (GOOG)

Alphabet Inc (NASDAQ:GOOG) is on investors’ radar as the company faces antitrust struggles and AI-related threats to its search business. Recently, Apple’s Services VP Eddy Cue said browser searches in Safari fell for the first time in April. Josh Brown, CEO of Ritholtz Wealth Management, said in a program on CNBC that this is a “watershed” moment for Alphabet Inc  (NASDAQ:GOOG) and the company is now competing in its core business for the first time ever:

“It’s not that Google now disappears. Google has a steady business that will consistently be a good business. It’s that the duopoly that we’ve become accustomed to over the last 10 years—of Meta and Google being, you know, 70–80% of online ads—that is now what’s in question. And to act like this isn’t a watershed moment, I think, is to ignore how powerful Google has been since even before it came public. Just—and you could play back my comments from the last two weeks—I’ve been saying this: for the first time, Google finds itself competing in core search. It never had to compete before.”

Alphabet posted strong quarterly results, but the market remains reluctant about the stock amid threats to its search business due to the onslaught of AI tools like ChatGPT. However, Alphabet Inc. (NASDAQ:GOOG) bulls believe these concerns are overstated.

Google has an edge over competitors because it’s easier for the billions of users of its search engine to switch to Gemini instead of opting for a completely new model. Google has over 1.5 billion monthly users interacting with its AI-powered Search overviews. OpenAI, Alphabet’s biggest competitor now when it comes to AI search, has less than 5% of its users paying, and its business model is still developing.  Google’s first-quarter results showed continued strength in its cloud unit, with revenue up 28% year over year and solid operating income growth. This supports Google’s broader AI strategy and underscores the scale advantages of its cloud business.

Mairs & Power Balanced Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOG) in its Q1 2025 investor letter:

“The Fund’s holdings in the Communications Services sector dragged on portfolio returns during the quarter due primarily to security selection. Alphabet Inc. (NASDAQ:GOOG) led underperformance as it fell in tandem with the other mega cap tech stocks. Additionally, there is increasing concern about the impact of generative AI on Alphabet’s search business and whether it will be able to meaningfully respond.”

While we acknowledge the potential of GOOG, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GOOG and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.