If the vast majority of Google revenue comes from search, and search is under siege, why is the stock so unfazed? It seems like the market thinks Google will be just fine.
Windows especially has been a sinking ship for a decade and yet Microsoft is bigger than ever.
Google is well positioned to monetize LLMs. Cloud, Gemini, and Waymo are all growing and could easily be Fortune 50 companies each within a few years.
Gsuite continues to do well.
Google Search revenue was still growing as of last quarter.
It's possible for Search revenue to still grow while Google Search total market share of search (if including LLM "search") goes down drastically (LLM users search more, not less).
It's also possible that total traditional Google Search volume could decline substantially without a huge impact to Search revenues.
Remember, only about ~15% of searches are Monetized. Google will be focused on keeping THOSE searches going.
It's possible Google could lose TONS of marketshare and still keep the frothiest part of the market...
OpenAI could take off more than any expects and be the biggest company in the world, and it's possible that only takes a small dent out of Search.
It's also possible Google could end up having a significant (if not dominant) part of the LLM search market.