Executives said on Wednesday's earnings call that strong growth in Google's AI Mode helped slow revenue growth, because the company earns less ad money on AI than on traditional search. Alphabet's stock plunged 12% on Thursday, shedding nearly $500 billion. Pichai said AI investments helped drive the fastest search query growth in five years, and chief business officer Philipp Schindler said most AI Mode queries are incremental, creating more monetization opportunities over time. Pichai also described AI agents as an expansion opportunity rather than a threat to search revenue. Google views the lost revenue as part of its AI investment, betting on a future where AI reshapes how people use the web.
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GOOGLartificial intelligenceadvertisingsearch engines
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Related tickers and likely impact
GOOGL
• NeutralAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/29/2026 | 283.75 |
| Change that session | -12.66% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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