Alphabet, the parent company of Google, is undergoing significant challenges as competition from generative AI platforms like ChatGPT grows. Despite generating substantial free cash flow, the stock's valuation has declined by nearly 20% in 2025. Google Search's market share has fallen below 90% for the first time since 2015, prompting Alphabet to develop its own AI platform, Google Gemini, and commit $75 billion towards capital expenditures. However, this effort is perceived as insufficient by worried investors as advertising still constitutes a significant part of its revenue.
"Google Search faces its most significant competitive challenge in recent years amid the rise of ChatGPT, marking a notable drop in its market share."
"Alphabet's recent efforts to develop a competing generative AI platform, Google Gemini, and to invest $75 billion in capital expenditures in 2025 haven't reassured investors yet."
Collection
[
|
...
]