The clock runs on Google’s search engine: what it means for alphabet stock and net profit
At the time, type something in Google (Goog) wanted to return to a light in a dark room. You would ask and the web would answer. Quick advance so far, and for the first time in decades, this search box is not the only game in town. AI’s tools like Chatgpt are quietly changing the way we are looking for information, and this change could strike Google where it hurts: its advertising revenues.
Google is still huge, but it’s no longer alone
Google manages about 14 billion research every day. This represents around 93% of the world research market. The business model is quite simple: you use a list of results, with advertisements sponsored at the top. This is a machine generating $ 50.7 billion in research advertisements in the first quarter of 2025.
Compare this now to Chatgpt. The Openai chatbot deals about 37.5 million requests per day, which is a fraction of Google’s volume, of course. However, the number increases rapidly. Between December and February, the chatgpt user basis increased from 300 million to 400 million weekly users, and Openai draws a billion by the end of the year.
The table below of Main Street Data (MSD) highlights the central role of Google Search in the conduct of global alphabet income.
It’s not a gadget, it’s a real change
What motivates change? Chatgpt gives you straight answers – no blue links, no clutter. You ask, “Do I have to buy alphabet actions if the chatbot search continues to go up?” And get a complete and original explanation. It’s like jumping the intermediary.
Of course, it is not yet perfect because hallucinations are still occurring, and all the answers are not hermetic, but for millions of users, convenience wins.
This is a problem for Google. All his research activity depends on clicks. The more you click on the links (especially sponsored), the more advertisers pay. But if people start getting answers without clicking anywhere? This ad model is starting to look a little trembling.
The numbers are relatively small, but the trajectory is not
Chatgpt currently holds between 0.25% and 2.1% (according to the source) of world traffic “similar to research”, up 740% compared to last year. It’s small, but he moves and moves quickly. If this trend continues, even a decrease of 5 to 10% of research traffic could mean billions of lost advertising revenues for Google.
And don’t forget that young users – the future of research – are the most comfortable with cat -based tools. It is not a coincidence.
Google does not sleep through it
To be fair, Google does not ignore the change. He launched Gemini, his own Chatbot AI, and began to deploy “IA glimpses” which answer questions directly in the search results. In theory, this maintains users in the Google ecosystem while providing the instant responses to which they get used to it.
However, a problem arises, however: these AI summaries do not leave much room for advertisements. If users do not scroll, do not click or see sponsored links, how does Google keep the money?
It is the central tension. Google must evolve without breaking the machine which made it rich.
What it means for investors
Currently, the alphabet is stable and advertising activity is always solid. But below the surface, the foundation moves. AI chatbots redefine the way users interact with the web, and companies that depend on old behaviors could be captured flat.
This does not mean that Google is in immediate danger, but it means that the adaptation pressure has never been higher. The question is no longer whether people will seek differently; It is how fast they will move and if Google can rotate quickly enough to meet them.
What is the price objective of Goog action?
Currently, Wall Street firmly believes in the long -term alphabet prospects, the scholarship sporting a high purchase rating. The average price target for Goog shares is $ 202.57. This implies an increase of increase of 22.62%.
See more Goog analysts notes
Warning and disclosure
