Can Alphabet’s AI Innovations Boost Google Search’s Market Share?

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Alphabet Inc. (GOOGL) held a market share of 89.54% in the search engine market as of May 2025, with competition from Bing (4%) and Baidu (0.69%). This reflects Google’s lowest share in two decades, as per StatCounter data. Despite challenges from generative AI applications and traditional search engines, Google’s new AI Overview mode has led to over a 10% increase in query usage among significant markets like India and the U.S., reaching 1.5 billion active users monthly.

Year-to-date, Alphabet’s share price has declined by 11.2%, underperforming its sector and industry benchmarks. The Zacks Consensus Estimate for Q2 2025 earnings is $2.12 per share, showing a projected growth of 12.17% year-over-year. Additionally, expectations for overall earnings in 2025 stand at $9.47 per share, indicating a 17.79% year-over-year increase.

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