Discussion
AI Overview damages Google ad revenue, stock crashes 12%
AI search may be worse, but it also makes less money
https://www.youtube.com/watch?v=YLtko3ouLqI&list=UU9rJrMVgcXTfa8xuMnbhAEA - video
https://pivottoai.libsyn.com/20261029-ai-overview-damages-google-ad-revenue-stock-crashes-12 - podcast
time: 5 min 40 sec
https://pivot-to-ai.com/2026/10/29/ai-overview-damages-google-ad-revenue-stock-crashes-12/ - blog post
@davidgerard And the thing is - Google knew this would happen. They didn't monetize LLM chatbots in the first place because they didn't see a monetizable use case until OpenAI released ChatGPT on the world
I wonder if there's a possibility of a shareholder lawsuit. I'd imagine discovery on that would be interesting...
@davidgerard
"What do you mean that orienting all the activities of the company around doing stuff detrimental to our main source of income could have bad consequences?"
Also i heard that Amazon is also affected
@davidgerard Google's not down all that much in the grand scheme of things.
All the "AI" related players have longer-timeframe charts like this. Google may look cheap at -22% in two days, and it will probably bounce off that prior low it touching, but it's not what you'd call cheap at this price. There's a rather huge gap down from here.
@chaekyung oh yeah, i was mostly surprised it didn't recover the same day and *stayed* 12% down
That's 12% today
Yesterday it was 10%
So that's 22% in 2 days.
Alarm bells ringing loud and clear.
@davidgerard indeed. I started using Vivaldi. Still Chromium based, but feels more intuitive and interesting to use.
@davidgerard Why, did they not spend enough?
@davidgerard I really wonder what traffic looks like. I know I use Google a lot less now that there's the actively wrong slop at the top of the page and I might as well just use Duck Duck Go or something equally mediocre because it'll suck but at least I won't have seductive bot lies at the top of the results.
@davidgerard Who could've seen this coming?
@davidgerard there was a bad joke I heard many years ago, something like "we're losing £1000 for every car we sell"
"That's ok, we'll make up for it in volume".
I didn't expect the joke's characters to dominate the world economy"