Alphabet’s Stock Drops Over 5% Following Recent Events
Shares of Alphabet Inc., the parent company of Google, experienced a significant drop of over 5% on Wednesday, following critical developments in a federal antitrust trial and concerning cybersecurity issues. By midday, Alphabet’s Class C stock was priced at $151.41, reflecting a decline of $13.79 or 8.35% for the day. This downturn was largely influenced by testimony from Eddy Cue, Apple’s senior vice president of services, who indicated a decline in Googleโs search traffic on Apple devices, attributed to rising competition from AI-driven search alternatives.
Antitrust Trial Insights
The recent testimony from Eddy Cue in a Washington court has raised alarms about Google’s market position. Cue revealed that Googleโs search traffic on Apple products fell last month, a trend he linked to the increasing popularity of AI-powered search engines like ChatGPT and Perplexity. This shift in user behavior is unprecedented, as Cue noted, stating, “That has never happened in 20 years.” His comments came during a trial overseen by US Judge Amit Mehta, who is tasked with determining how Google should respond to a previous ruling that deemed it an illegal monopoly in online search. The implications of Cue’s testimony were immediate, resulting in a staggering $140 billion loss in Google’s market capitalization since the previous day’s trading close.
The ongoing trial has also shed light on the financial relationship between Google and Apple, revealing that Google pays Apple tens of billions annually to maintain its search engine as the default option on Apple’s Safari browser. This revenue-sharing agreement has been a cornerstone of Google’s strategy to secure its dominance in the search market. However, with the emergence of AI alternatives, the sustainability of this model is now under scrutiny.
Cybersecurity Concerns
In addition to the antitrust issues, Google has disclosed the identification of a new strain of malware named โLOSTKEYS,โ which is linked to the Russia-based hacking group Cold River. Wesley Shields from Google’s Threat Intelligence Group reported that this malware is capable of stealing files and transmitting sensitive system information to attackers. The emergence of LOSTKEYS marks a significant advancement in Cold Riverโs cyber capabilities, which have previously targeted high-profile Western entities, including NATO governments and NGOs.
Cold River has connections to Russiaโs Federal Security Service and has been involved in various cyber campaigns, with recent activities noted as recently as early 2025. Notably, the group was responsible for targeting US nuclear research labs in 2022 and leaking private emails from former British intelligence chief Richard Dearlove. The revelation of this malware underscores the ongoing cybersecurity threats that major tech companies like Google face in an increasingly hostile digital landscape.
Energy Infrastructure Initiatives
Amid these challenges, Google is also making strides in energy infrastructure. The company announced a significant partnership with nuclear developer Elementl Power to construct three advanced nuclear power plants in the United States. Each facility is projected to generate at least 600 megawatts of electricity, sufficient to power large-scale data centers. This initiative comes as tech companies grapple with rising energy demands driven by the generative AI boom.
Google plans to provide early-stage capital for these projects, which will be developed in collaboration with utility and regulatory partners to ensure suitable locations. Amanda Peterson Corio, Google’s Global Head of Data Center Energy, emphasized that this initiative aims to bolster the energy grid. She highlighted the importance of advanced nuclear energy as a reliable source of continuous power, essential for supporting AI and innovation. The International Energy Agency (IEA) has projected that electricity consumption by data centers will more than double by 2030, presenting significant challenges to existing power infrastructureโchallenges that this partnership seeks to address.
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