Alphabet selloff on Eddy Cue testimony overdone, says JPMorgan

JPMorgan says Alphabet (GOOGL) (GOOG) shares traded down 7% on Wednesday on testimony at the Google commercial search trial from Eddy Cue, Apple’s (AAPL) senior vice president of Services. Cue noted that search volume on Apple was down in April for the first time in 20 years because people are using ChatGPT and Perplexity, indicated that Apple is considering adding artificial intelligence providers as search options on Safari and has had discussions with Perplexity and OpenAI, and emphasized that losing revenue share from Google would have a significant impact on Apple and its ability to create new products, the analyst tells investors in a research note. JPMorgan believes the first two points suggesting share loss and increased competition “add more fuel to the bear fire which has weighed on Google for more than two years.” The firm, however, believes the selloff of Alphabet shares is overdone. It looks for the annual Google I/O event on May 20-21 to showcase additional AI and product innovation.