An Apple executive stated that AI search engines could eventually replace Google
Alphabet Inc (NASDAQ:GOOGL) stock was last seen down 7.6% to trade at $150.77. Per Bloomberg, Apple's (AAPL) Senior Vice President of Services Eddy Cue said that artificial intelligence (AI)-driven engines like ChatGPT could eventually replace standard search engines such as Google. Cue was testifying in the Department of Justice (DOJ) lawsuit against Alphabet, and stated that the Apple is "actively looking" to reshape its Safari web browser to prioritize AI.
Options traders are targeting GOOGL, with 710,000 calls and 506,000 puts traded so far today, which is quadruple the intraday average volume. The most popular contract is the weekly 5/9 155-strike call, followed by the 150-strike put in that same series, with new positions opening at both.
Options look like an affordable way to bet on the security's next moves. This is according to GOOGL's Schaeffer's Volatility Index (SVI) of 30%, which ranks in the 21st percentile of its annual range.
Alphabet stock is on track for its worst single-day percentage drop since October 2023, drawing back closer to its April 7, 52-week low of $140.53 as it extends a 20.5% year-to-date deficit. Overhead pressure from the descending 60-day moving average has been capping the equity since early February.
