GoKawiilAlphabet shares fall 11% as Google says AI Mode search earns less than traditional ads
Alphabet's stock dropped more than 11 percent on Wednesday, erasing over $500 billion in market value, after the company reported that its AI Mode search feature generates less revenue than its traditional text-link search ads. Google's Q3 revenue rose 25 percent year-over-year to $127.6 billion, but search revenue growth slowed to 12 percent from 14.5 percent a year earlier, even as capital expenditures on AI more than doubled to $51.4 billion. Chief business officer Philipp Schindler attributed the softer search growth to 'lower monetization' in AI Mode, according to Search Engine Land.
GoKawiil's interpretation of the reporting above, not reported fact.
The results suggest investors are growing wary of how Google will fund its massive AI buildout if its flagship advertising business — which has long powered the company's profits — grows more slowly under AI-driven search formats. This could pressure Google to find new ways to monetize chatbot-style search, potentially affecting both publishers whose content underpins Google's AI answers and advertisers who have relied on its traditional ad model. The episode may also fuel broader skepticism about whether heavy AI spending across the tech industry is translating into comparable revenue gains.
- Alphabet stock fell over 11%, wiping out more than $500 billion in market value.
- Google's AI Mode search feature earns less money than its traditional link-based search ads, per company executives.
- Search revenue growth slowed to 12% year-over-year even as AI capital spending more than doubled to $51.4 billion.
Source: futurism.com — Frank Landymore, 2026-10-29
Published there as: “Google Starved Out Publishers With AI Search. Now, Its Pivot Is Blowing Up in Its Face.”
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