Description

Is This the Beginning of the End for Google Search? Alphabet’s Future Hangs in the Balance!

Alphabet’s Q1 2025 results painted a picture of strength—double-digit revenue growth in Search, the massive rollout of AI Overviews to 1.5 billion monthly users, and momentum across Cloud and YouTube. Yet beneath the surface, the Search business—long Alphabet’s cash machine—faces unprecedented disruption. The rise of AI native platforms like OpenAI’s ChatGPT and Perplexity AI is quietly reshaping user behavior. Once the gateway to the internet, Google Search is increasingly bypassed by AI tools offering summarized answers, reducing click through traffic to websites. Meanwhile, Alphabet’s own AI Overviews, while adopted broadly, have led to decreased user engagement with external links. Data from Similarweb shows sharp drops in Search-generated traffic to platforms like Tripadvisor, Netflix, and even Schwab.com. Digital publishers and vertical search dependent platforms are facing revenue pressure. Alphabet’s internal AI push may cushion the blow, but the broader shift away from traditional search raises existential questions about the long-term sustainability of its advertising juggernaut.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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