Why AI is boosting Meta's ad business while hurting Google search

Impact · against what's priced in

The news is largely a confirmation of the current bearish sentiment for Google and a validation of the baseline for Meta. Google's search growth slowdown confirms the market's refusal to pay for AI-driven search monetization, while Meta's AI-led ad growth aligns with the revenue deceleration targets already baked into its price.

GOOGL−0.10

Already priced in

The price assumes

Search advertising revenue growing near the current 13.4% pace

The reported 12% growth in the search division is slightly below the 13.4% baseline the price assumes, confirming the structural softness the market has already priced in.

What GOOGL's price assumes · Sep 2

• META▲238%
• GOOGL▲75%
• cloud computing▲11%
• earnings
• AAPL
• ai
• big tech