Artificial Intelligence is creating a significant divergence in mega-cap tech, with Meta Platforms (META) benefiting while Alphabet's (GOOGL) search business faces disruption. Meta's Q3 ad revenue grew 26% YoY to $63.1B, now nearly matching Google Search's 12% growth to $63.4B. This 14-point growth gap is the widest in Meta's favor since 2021 .
Analysts attribute Meta's ad strength to AI-powered targeting tools, while Google's search ad revenue is pressured by AI chatbots offering alternatives to traditional search. This shift contributed to Alphabet's stock plunging over 12% post-Q3 earnings, wiping out ~$500B in market cap .
Why AI is boosting Meta’s ad business while hurting Google search
CNBC.COMNov 1, 12:00 PM UTC
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