Capital spending by tech giants, including Alphabet and Amazon, is under scrutiny following recent earnings reports. Google stock has seen a 10% decline since its Q4 earnings, trading below its 50-day moving average, with an overall 5% dip in 2025. The impact of generative AI on Google’s search advertising profits raises investor concern. OpenAI’s user growth exacerbates competition issues. Additionally, antitrust lawsuits from the Department of Justice challenge Google's dominance, potentially affecting its operations significantly as the new appointment of Gail Slater might shape how these cases proceed.
Overall, Google stock has retreated nearly 5% in 2025. Shares trade below the 50-day moving average of Alphabet stock. The impact of generative artificial intelligence on the internet search advertising business remains a key issue for investors.
Startup OpenAI claims that it now serves 400 million weekly active users, reflecting significant acceleration in adoption and raising concerns about competition in the search advertising space.
Slater will report to Attorney General Pam Bondi. As assistant attorney general for the antitrust division, she would oversee ongoing cases versus Google, Apple, and other companies.
In a U.S. Senate confirmation hearing, Slater acknowledged that "resources" will be a factor in pursuing the cases filed against major tech companies.
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