Alphabet (NASDAQ:GOOGL) rode its search engine algorithms all the way to the pinnacle of Silicon Valley, becoming one of the biggest and most influential companies in the world. There have been plenty of competitors along the way, and yet none have seemed to solve the magic formula that makes Google the go-to search engine for much of the Western world.
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However, with the advent of AI and chatbots, some are beginning to wonder if cracks are starting to form in Google’s seemingly impenetrable armor. Perhaps, the thinking goes, searchers will simply input their queries into increasingly competent chatbots, enjoying fully formed answers as opposed to the list of websites that Google’s standard web search provides.
Adding to the burgeoning worries, Apple recently reported that searches on its iPhone (Apple’s Safari browser’s default search engine is powered by Google) dipped for the first time in April. Could this be another sign that the sun is setting on the golden age of Google?
One investor, known by the pseudonym Stone Fox Capital, believes fears that Google is about to lose its prized cash cow are way overblown.
“Google definitely faces some incredible threats to losing the golden goose search business over time, but this day hasn’t happened yet, and the company is spending aggressively on capital expenditures to prevent this scenario,” asserts the 5-star investor.
Stone Fox points out that the numbers simply do not reflect a worrisome picture. For instance, in the recently reported 2025 Q1, Google reported search engine revenues of $50.7 billion – a year-over-year increase of 11%.
This continues the very bullish trend over the past few years, notes the investor, as Google Search revenues have increased by ~66% since the beginning of 2021. Driving the point home, Google is in fact enjoying a record number of daily users at 907 million.
As for the supposed iPhone slump, the investor pushes back. According to Google, more users are skipping Safari entirely and heading straight to the Google app for their queries – a shift in behavior, not a decline in interest.
Meanwhile, Google is going full throttle into AI, integrating its Gemini AI model into the core Search product and investing $75 billion in capex this year. So the message is clear: Google has no intention of giving up its search crown – not now, and not anytime soon.
“The key investor takeaway is that the market appears to think the Google golden goose is dead, when the reality doesn’t support this narrative. The tech giant remains a dominant leader and the stock is cheap,” concludes Stone Fox Capital, who rates GOOGL shares a Strong Buy. (To watch Stone Fox Capital’s track record, click here)
Wall Street is also feeling comfortable with Google. With 28 Buys and 9 Hold recommendations, GOOGL boasts a Strong Buy consensus rating. Its 12-month average price target of $197.69 implies a ~19% upside potential from current levels. (See GOOGL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.