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2h ago

Wall Street Stays Bullish on Alphabet as AI Overviews Show Scale and Ad Parity

Investors cite AI Overviews' scale alongside ad monetization parity as evidence of resilient search revenue.

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Overview

  • Nuveen CIO Saira Malik called Alphabet a leader in AI and said concerns about OpenAI’s impact on Google’s ads look overstated, pointing to upside from Waymo and YouTube.
  • An investor letter reports AI Overviews reached about 1.5 billion monthly users by April and are monetizing at the same rate as standard Search ads.
  • Lakehouse Global Growth Fund highlighted stronger AI Overviews engagement, including more frequent and more detailed queries and higher click‑through rates.
  • Recent fundamentals cited include 12% year‑over‑year revenue growth and operating margins of roughly 32.6% in the latest quarter.
  • Analysts say Google can place ads in AI search results and leverage its vast distribution—nine products with over 1 billion users—while Gemini rolled out to Google TV on Sept. 22 with broader device support coming later this year.