In the run-up to Alphabet’s upcoming earnings report on July 22, analysts at Bank of America (BofA) are optimistic about the company's prospects. New findings indicate that Google managed to attract 2.8 billion global web visits in June, marking a 4% increase compared to the same month last year. This gain, while modest, signifies Google's resilience amid stiff competition from emerging AI platforms.
Year-on-year comparisons reveal a significant uptick in user engagement. Notably, Google's mobile daily average users grew by 12%, illustrating the platform's enduring appeal. Despite the notable spikes in traffic experienced by competitors like Claude, which surged by a remarkable 736%, and Meta AI, which grew by 98%, Google seems firmly in position to maintain its user base without dramatic fluctuations.
Gemini's Impact on Google Search
A key concern leading into 2026 was whether Google’s own AI initiative, Gemini, would disrupt its traditional search ecosystem. Instead, Gemini's web traffic has increased more than fourfold in the past year, with mobile daily users soaring 295%. This growth reportedly came at the expense of ChatGPT rather than Google Search, confirming that the integration of Gemini into Google’s search features is proving effective.
BofA analyst Justin Post revealed that Google’s recent comments hint at a potential expansionary phase for the search business, which remains the cornerstone of Alphabet's revenue. Analysts estimate that with stable traffic and solid eCommerce volumes, there’s likely to be positive surprises in the upcoming earnings report.
Analyst Outlook and Market Reaction
However, the company's stock has faced challenges, particularly with recent departures from DeepMind that could impact its competitive edge against players like OpenAI and Anthropic. As the landscape evolves, investors remain watchful, weighing long-term growth against present uncertainties.
This material is informational and should not be considered financial advice.
