Alphabet Stock Tumbles Amid Fears of AI Disruption

Alphabet's stock is experiencing downward pressure as a broader market selloff hits companies seen as vulnerable to disruption from Meta's rapidly growing Muse AI agent.

The sudden surge of Muse to the top of Apple's U.S. App Store has sent shares of Meta Platforms up 11% and sparked a selloff in financial and travel stocks, including Alphabet.

Goldman Sachs' trading desk warned that businesses built around recurring charges could lose ground as AI agents get sharper at comparing prices and navigating customer support.

The bank's basket of vulnerable stocks includes AT&T, T-Mobile, Allstate, Progressive, Netflix, Paramount Skydance, Expedia, and Booking, but Alphabet's situation is different from the companies Goldman named outright.