Some investors see Google's AI search monetization problem in its earnings

Google's AI search problem finally shows up in the earnings report, some investors believe

Google's Q3 search revenue grew about 12%, below the 15% analysts expected, and some investors tie the gap to weaker monetization of AI search. Market value fell as much as 10% at one point. Google acknowledged that fast-growing AI Mode queries weighed on monetization, said search queries hit their highest annual growth in five years, and plans to expand chatbot ads in the US and abroad.

Why it matters: Google admitted on its earnings call that AI Mode queries monetize poorly, exposing tension between query growth and slower search revenue.