Google's Q3 search growth missed expectations; investors worry AI monetization is dragging down core business

Google reported approximately 12% year-over-year revenue growth in Q3, below the 15% forecast by analysts, causing its market cap to dip by as much as 10%. Executive Philipp Schindler acknowledged that the surge in AI mode queries was impacted by lower monetization rates. Meanwhile, the company stated that search query volume is growing at its highest annual rate in five years and plans to expand its chatbot advertising initiatives in both US and international markets.