Why GOOG Stock Is Dropping Today

Alphabet (GOOG) stock is sliding 1.5% after the internet search giant lost a major EU court case and was sued by a fairly large American company.

Alphabet Loses EU Case

The EU’s highest court ruled that Alphabet may have abused its market strength and violated antitrust laws by declining to let another firm place an app on Android Auto. However, the court added that the refusal may have been justified if the app would have harmed the app’s security or integrity. GOOG has reportedly settled the current case.

Google

GOOG was Sued by Chegg

Chegg (CHGG) sued Alphabet, saying that the search giant’s AI Overviews constitute unfair competition. Chegg, which is reviewing strategic alternatives, reported that its business has been badly hurt by Google’s AI summaries.

“These two actions are connected, as we would not need to review strategic alternatives if Google hadn’t launched AI Overviews.” “Traffic is being blocked from ever coming to Chegg because of Google’s (AI Overviews.) and their use of Chegg’s content to keep visitors on their own platform,” Chegg CEO Nathan Schultz said.

The Recent Price Action of GOOG Stock

In the last month, GOOG stock has dropped 9.3%. However, it has climbed 4.7% in the last three months.

While we acknowledge the potential of GOOG, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOG but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ ALSO 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.