Google's AI search summaries undercut Bing's traffic advantage, sending MSFT down 2.24% and GOOGL down 7.13% ahead of earnings.
Microsoft shares fell 2.24% to $381.58 Monday. Alphabet dropped 7.13% to $317.69. The declines followed a report that Google's AI-powered search summaries are eroding the traffic advantage Microsoft's Bing had built through its own AI investments.
Google's search share has held near 90% despite Bing's AI push. The new summary feature lets users get answers without clicking through to third-party sites. That dynamic has made Microsoft's Copilot integration a mixed bet for publishers. Alphabet's steeper decline reflected a market reading that Google's AI execution is undercutting the revenue case for both companies' search businesses.
Microsoft carries an Alpha Score of 59 out of 100. Alphabet's score is 62. Monday's selloff wiped out roughly $180 billion in combined market value between the two stocks.
Volume on Microsoft ran about 40% above the 30-day average. Alphabet saw nearly double its normal volume. No analyst downgrades were issued.
Both companies report earnings in the coming weeks. Microsoft reports on April 22. Alphabet reports on April 24.
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