Why Alphabet Inc. (GOOG) Nosedived on Wednesday

We recently published an article titled Why These 10 Firms Nosedived Today. In this article, we are going to take a look at where Alphabet Inc. (NASDAQ:GOOG) stands against the other stocks.

The stock market bounced back from the previous day’s losses, with all major indices finishing higher as investors cheered the central bank's decision to keep interest rates unchanged.

On Wednesday afternoon, the Federal Reserve kept rates steady at a range of 4.25 percent to 4.5 percent, saying that it was not in a hurry to cut rates and could still “wait and see” the impacts of President Donald Trump’s tariff policies.

The Dow Jones rallied by 0.70 percent, the S&P 500 increased by 0.43 percent, and the Nasdaq grew by 0.27 percent.

Beyond the major indices, bucked a broader market optimism as investors sold off on a series of disappointing news.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.

Alphabet Inc. (NASDAQ:GOOG)

Alphabet Inc. (NASDAQ:GOOG), operator of search engine giant Google, dropped its share prices by 7.51 percent to close at $152.80 apiece as investor sentiment was dampened by news that Apple Inc. was setting its sights on AI-powered search features for its Safari browser.

Speaking to the US Department of Justice’s antitrust trial against Alphabet Inc. (NASDAQ:GOOG), Eddy Cue, Apple’s senior vice president for services, said that Apple had no intention of creating its own search engine platform, but was “actively looking” to integrate AI tools into Safari.

The remarks fueled concerns that Alphabet Inc.’s (NASDAQ:GOOG) largest revenue-generating business could be dragged down by the rise of generative AI tools.

According to Cue, user inquiries into Safari had already dropped for the first time last month as they increasingly turned to large-language models for answers.

Currently, Siri only offers OpenAI, but Cue said that Apple is looking to add other models in the future, including Gemini.

Overall GOOG ranks 10th on our list of Wednesday's worst performers. While we acknowledge the potential of GOOG as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than GOOG but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

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