"Google has been on a three-month tear since its last check-in, launching Gemini 3 to much fanfare and joining the $4 trillion market-cap club. The string of successes put it at the front of the highly competitive AI race. (A quick aside on these arbitrary rankings. You could argue Nvidia's the biggest winner of the AI race, but it's really in its own bucket. I'm talking about companies with competing chatbots. No further questions at this time.)"
"You don't have to search too far to find the key to Google's earnings. Google Search (get it) and the ad business built around it are still the company's crown jewel. It's also an area many have speculated AI would upend. (Why "Google it" if you can "ChatGPT it"?) Google has managed to incorporate AI features without cannibalizing its cash cow. But it's a tricky balancing act, and Google is already blurring the line between Search and Gemini."
Google launched Gemini 3 and reached a $4 trillion market capitalization, powering a three-month stock surge and positioning the company prominently in the chatbot-driven AI race. AI developments create rapid sentiment swings, with peers like Meta and Microsoft experiencing volatility. Investors anticipate a sizable post-earnings stock move, with implied one-day volatility at 4.9%. Google Search and its advertising ecosystem remain the primary revenue engine. Google has rolled AI into Search without significantly cannibalizing ad revenue so far. The central risk is that sustained traffic migration from Search to chatbots would force monetization choices, potentially bringing ads into chatbot products.
Read at Business Insider
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