Google acknowledged that its AI-generated search summaries are affecting ad revenue, and its stock fell as about $500bn in value was lost. Google reported negative cash flow of -$9.06 billion in its Q3 earnings.
Google's stock fell as much as ten percent after quarterly earnings showed search revenue growing just 12 percent, slower than expected, while cloud revenue more than doubled to $30.7 billion. Google acknowledged that its fast-growing AI mode brings in less revenue.
Why it matters: It suggests Google's shift toward AI search may weigh on its core advertising revenue.
Written by AI from The Decoder's published text.
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Google says AI search hurts revenue as its market value drops
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“Google's stock dropped as much as ten percent after its quarterly earnings. Cloud revenue more than doubled to $30.7 billion, but search revenue grew just 12 percent, slower than expected.”
Reporting from a publisher outside the organisation being covered.
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