Google stock drops amid AI fears; AI Mode has ‘lower monetization,’ getting more ads
Google is bringing ads to AI Mode globally as it admits that the new take on Search brings “lower monetization,” all while $GOOG stock is seeing a fairly major drop. more…
Google's stock has taken a significant hit amid concerns surrounding its new AI-powered search feature, known as AI Mode. During Alphabet's Q3 earnings call, Google's Philipp Schindler admitted that AI Mode has "lower monetization" compared to traditional search. This lack of revenue generation, despite strong growth in AI Mode's query volume, appears to be impacting Google's bottom line.
While the company is optimistic about the trajectory and has begun rolling out ads within AI Mode to users in various countries, the overall impact on Google's revenue appears to be negative. The drop in Google's stock price has resulted in a market cap reduction of over $500 billion, marking it as the second-largest drop behind Nvidia's decline in 2025.
Written by urgent.news from 9to5Google's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Google is sneaking more ads into AI Mode searches androidpolice.com
- Google brings AI Mode advertisements to more countries engadget.com
