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Alphabet shares sink after Apple's Cue says AI will replace search engines

1. Eddy Cue stated AI search engines may replace Google. 2. Google's ad business is threatened by a lawsuit. 3. Alphabet shares dropped over 7% due to potential penalties. 4. The default search engine deal with Apple is under scrutiny. 5. Search volume on Safari reportedly declined for the first time.

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FAQ

Why Very Bearish?

The Justice Department's lawsuit poses a serious risk to Google's revenue model, similar to past antitrust cases like Microsoft, which significantly affected its market position.

How important is it?

The lawsuit's implications directly affect Google's advertising model, influencing investor confidence.

Why Long Term?

The outcomes of legal proceedings often take time, and changes in search engine dominance may impact market perceptions over years.

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