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Google's AI in search reduces ad revenue, threatening Alphabet's core business model.

Market News
29 Oct 2026, 21:37 WIB
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Bearish
Google's AI in search reduces ad revenue, threatening Alphabet's core business model.

Alphabet's introduction of AI features in Google Search has led to a surge in query growth but with lower monetization compared to traditional ad-supported searches. This shift worries analysts as Google's dominant search ad revenue, which has driven much of Alphabet's growth, faces potential erosion without a proven replacement revenue model from AI. Despite strong overall revenue growth, the challenge remains for Alphabet to monetize AI effectively before its core search ad business declines further.

Google's stock price on Pluang dropped sharply by 12.68% to USD 281.06 as of Oct 30, 2026 01:51 WIB, reflecting investor concerns about the monetization challenges of AI in search. Despite Alphabet's massive $3.96 trillion market cap, the sharp one-day decline highlights market uncertainty about the future revenue model beyond traditional search ads. Pluang data shows a strong buy interest with 78% of orders favoring purchases, indicating some investors see potential despite the current volatility.

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