Google Sends Clear Message To Investors Ahead Of Earnings: AI Isn't Killing Search — It's Making It Stronger, Says Gene Munster - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

Core Viewpoint - Concerns regarding artificial intelligence disrupting Alphabet Inc.'s Google search dominance are unfounded, as AI is enhancing, not undermining, its core business [1] Group 1: Google's Search Performance - Gene Munster from Deepwater Asset Management asserts that Google's search business is performing well, with expectations of an 11.7% revenue growth in the September quarter, surpassing Wall Street's estimate of 11.2% [2][3] - Liz Reid, Google's head of Search, indicated that AI is positively impacting search, a message delivered strategically before the upcoming earnings report [3] Group 2: AI User Growth - Munster predicts that the number of monthly AI Mode users will increase significantly to over 300 million in September, up from over 100 million in June [4] Group 3: Competitive Landscape - Despite growing competition from Microsoft’s Bing, which is projected to increase its market share from 3% in mid-2023 to approximately 4% by 2025, Google's search share remains robust at around 85-90% globally [5] - Analysts, including those from Truist Securities, agree that AI is expanding Google's total addressable market rather than cannibalizing it, maintaining a positive outlook on the company's prospects [6] Group 4: Market Sentiment - Alphabet Inc.'s Class A shares experienced a 3.30% increase, while Class C shares saw a decline of 3.01%, reflecting mixed market sentiment [7]