After the U.S. market closes tonight, Google reports earnings. What I’m watching isn’t how much cloud grew, but whether search ads can hold up when AI serves answers directly.
In the past, users searched for something, clicked through a bunch of links, and ads got sold along the way. Now AI serves up the answer right at the top. Fewer people click links, so will advertisers still be willing to pay for search? That’s the real test in this earnings report, $GOOGL .
Search ads make up the bulk of Google’s revenue. If that part starts to spring a leak, even a strong cloud business and Gemini can’t make up for it in the narrative. On the other hand, if ad revenue holds steady, then the “AI is killing search” claim may need to be put on hold.
What do you think? Is AI answering directly helping Google keep its users, or is it dismantling its most profitable business?
#CanGoogleDefindItsCore #EarningsSeason $GOOGL
Not investment advice. DYOR. Trading involves risk.
In the past, users searched for something, clicked through a bunch of links, and ads got sold along the way. Now AI serves up the answer right at the top. Fewer people click links, so will advertisers still be willing to pay for search? That’s the real test in this earnings report, $GOOGL .
Search ads make up the bulk of Google’s revenue. If that part starts to spring a leak, even a strong cloud business and Gemini can’t make up for it in the narrative. On the other hand, if ad revenue holds steady, then the “AI is killing search” claim may need to be put on hold.
What do you think? Is AI answering directly helping Google keep its users, or is it dismantling its most profitable business?
#CanGoogleDefindItsCore #EarningsSeason $GOOGL
Not investment advice. DYOR. Trading involves risk.