I think the 10%+ sell-off of Google after its Q3 earnings is massively exaggerated. Everybody is focusing o…
by Marcel Hollerbach · World of Commerce
I think the 10%+ sell-off of Google after its Q3 earnings is massively exaggerated. Everybody is focusing on the lower monetization Google is seeing in AI mode and the expenses for data centers.
I think Google is in a prime position to emerge as a strong leader in AI. Given the scale of its ad business, the company simply cannot make a switch from one day to the next and change everything. They will get there over time and figure out how to monetize AI queries properly.
Google has so much knowledge about its consumers. Think of insights into email, payments, search history, schedules, and browsing behavior, just to name a few. OpenAI won’t be able to compete with this in the foreseeable future.
Then, on top of this, come some hard facts: 🟢 Google Cloud is projected to surpass Search revenue by Q1 2028. 🟢 Google Cloud is experiencing a 103% year-over-year growth rate as of Q3 2026. 🟢 Cloud is adding 2.3x as much new revenue year-over-year compared to Search. 🟢 At current growth rates, Cloud revenue in 2027 is estimated at $225B, compared to $289B for Search.
Looking at these numbers, investments in infrastructure and data centers look very reasonable.
Brace for impact and a strong Google comeback.