Google's stock fell by as much as 10 percent following its latest quarterly earnings report, according to The Decoder. While the company's cloud revenue more than doubled to $30.7 billion, its search revenue growth slowed to 12 percent, missing market expectations.
The Decoder also noted that Google acknowledged its rapidly expanding AI mode generates less revenue compared to traditional search. In response, the company is expanding its AI mode advertising program internationally in an effort to boost monetization.
For Japanese investors, this development highlights the challenges tech giants face balancing innovation-driven growth and revenue expectations, particularly as AI continues to reshape digital advertising dynamics globally.