Google earnings call admits AI Mode is under-monetized; analyst likens it to Facebook's mobile pivot
robleclerc · x · 2026-10-29
On its earnings call, Google admitted that "strong growth in AI mode queries had an impact because of the lower monetization we were seeing in AI mode." Investor robleclerc argues against counting Google out:
- He uses AI Mode heavily: fast and easily accessible, but clearly under-monetized; AI Mode engagement builds a more intimate user relationship than search queries, yielding richer profiles to monetize, further boosted by agentic products.
- He likens Google's position to Facebook's mobile transition — Facebook figured it out and ads grew faster than ever.
- He predicts compute & AI revenue will surpass ads as Google's bigger pillar by the end of 2027.
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