Changing search habits may threaten Alphabet's Search business. Personal search use has changed a lot, and that looks likely to become a broader trend. Search remains a real concern; buying more Alphabet right now looks unlikely. x.com  x.com 

Alphabet's search monopoly faces a different competitive game as agent companies build their own search tools. Google Cloud grew 103%, but that was not enough to offset disappointing ads growth. Its only path is to accelerate AI training and keep spending on capex. Search will never be the same, and the risk-reward has changed, though Alphabet remains an optimistic prospect. x.com  x.com  x.com 

Baidu trades below book value, one of the best values seen in many years, with about $40 billion of equity against a $39 billion market cap. Legacy search is declining, but the cloud, AI and robotaxi businesses are very strong, and book value is a better value metric than an easily manipulated P/E. x.com  x.com 

Alphabet's core Search growth is slowing while AI spending surges, making the selloff look deserved despite fast Cloud growth. Search growth fell from 19% to 17% to 12% over three quarters; Search now represents just under half of revenue. The stock could fall to $250, though Amazon is the preferred buy. x.com  x.com  x.com  x.com  x.com 

Alphabet's search business faces disruption as AI alternatives start to replace traditional searches, even though the shift has yet to hurt revenue. Search still grew 12%, as predicted, but this may be its last double-digit result. Early Uber use in San Francisco likewise preceded taxis losing share. Alphabet's impressive cloud growth accounts for only a quarter of revenue. x.com  x.com  x.com  x.com  x.com  x.com 

Baidu looks undervalued because its $30B market value at $90 roughly equals its $30B of net cash, leaving a very valuable AI chip business for free. Morgan Stanley disagrees, downgrading it to Underweight with an $80 target, down from $130, citing weak advertising revenue and rising AI investment, and expecting core operating profit to trough in Q3. x.com 

AI Mode monetizing even close to classic Search would make Alphabet's selloff the overreaction value investors wait years for. The market is pricing Search like a melting ice cube while Cloud doubles. x.com 

Alphabet's search revenue is unlikely to reaccelerate sustainably as zero-click searches erode its revenue opportunity. Zero-click searches now account for 68% of searches, up from 60% in 2024, and cloud is not yet as profitable as search, limiting its ability to offset the problem. x.com  x.com 

Baidu is severely inefficiently priced below $200 and is under active institutional accumulation. x.com 

Google's advertising business is losing ground to Meta and others, while Cloud, including TPU hardware sales, has not yet delivered the growth driving its AI transition. The shift from search to an AI-infrastructure "shovel seller" has not succeeded yet, so a bullish turnaround case still requires waiting for stabilization before considering a bottom. x.com