Has Wall Street stopped panicking about AI chatbots destroying Alphabet Inc.'s (NASDAQ:GOOGL)'s traditional search business? On August 19, ****** yst Scott Devitt initiated coverage on the stock with a Buy rating, noting how concerns around Search have largely played out. However, declaring a multi-year risk narrative to be effectively over is a bold ****** ertion worth stress testing.
The data shows Google controls 90% of the search market. However, the risk still looms as people often turn to chatbots to search for information. Against this backdrop, the company has redesigned the search box for the first time in 25 years, placing the "AI Mode" ****** on directly in the box.
To discuss things deeper, Alphabet's (NASDAQ: GOOGL) second-quarter report earlier buried the search figure under two louder storylines. These include a $99 billion paper gain on its equity stakes, and an increase in capital spending plans. However, the numbers are there to decipher.
In the second quarter, Google Search & other revenue grew 17% year over year to $63.3 billion, down from 19% growth in the prior quarter and slightly behind expectations. Search was on a growth streak previously, accelerating from 10% in the first quarter of 2025 to 12% in the second quarter, 15% in the third, 17% in the fourth, and 19% in the first quarter of 2026. However, second quarter of 2026 snapped it.
"Considering Google's search revenue for the second quarter came in at $63.3 billion, slightly behind Wall Street's expectations of $63.4 billion, and investors will likely be scrutinizing the business in the third quarter."
#billion
The data shows Google controls 90% of the search market. However, the risk still looms as people often turn to chatbots to search for information. Against this backdrop, the company has redesigned the search box for the first time in 25 years, placing the "AI Mode" ****** on directly in the box.
To discuss things deeper, Alphabet's (NASDAQ: GOOGL) second-quarter report earlier buried the search figure under two louder storylines. These include a $99 billion paper gain on its equity stakes, and an increase in capital spending plans. However, the numbers are there to decipher.
In the second quarter, Google Search & other revenue grew 17% year over year to $63.3 billion, down from 19% growth in the prior quarter and slightly behind expectations. Search was on a growth streak previously, accelerating from 10% in the first quarter of 2025 to 12% in the second quarter, 15% in the third, 17% in the fourth, and 19% in the first quarter of 2026. However, second quarter of 2026 snapped it.
"Considering Google's search revenue for the second quarter came in at $63.3 billion, slightly behind Wall Street's expectations of $63.4 billion, and investors will likely be scrutinizing the business in the third quarter."
#billion
2 days ago
