STOCKS | Alphabet’s AI Success Threatens Its Search Dominance

Investors have questioned how long Google can retain its internet-search dominance in the AI era, and Alphabet's search revenue came in below expectations in its earnings report last week. According to Sina Finance, Alphabet said the growing adoption of AI Mode, which monetizes at a lower rate than traditional search, was also a factor; the company's expanding AI business is eroding a traditional strength. Stash Graham, chief investment officer at Graham Capital Wealth Management and an Alphabet shareholder, said there was reason for concern if the company's “cash cow” stopped being one. Alphabet rebounded on Wednesday as post-election optimism lifted most megacap technology stocks, but that did not erase its historic sell-off after last week's earnings. Search accounted for more than half of Alphabet's 2025 revenue, while surging capital expenditure, concerns that the company was trailing in cutting-edge AI models, and negative free cash flow in the previous quarter had also weighed on investors.