Alphabet earnings: Stock climbs as Wall Street reacts to upbeat growth
Search is a massive business for Alphabet. So Wall Street has been wondering how the AI revolution will impact this powerhouse.
Specifically, advertising has been lucrative within the Google search engine, but analysts have questioned whether AI search will be the same sort of moneymaker.
Alphabet executives addressed this topic on the earnings call, saying that early AI monetization efforts are showing traction. “The transition here is working well, including for ads,” Chief Business Officer Philipp Schindler said.
With AI Overviews for search, Google sees “monetization at approximately the same rate, which gives us a really strong base on which we can innovate,” he added.