1. Google cancels Financial Times subscription amid broader cost-cutting measures. 2. Strong Q2 results reported with $96.4 billion revenue, but cuts continue. 3. Referral traffic from Google to publishers fell 10% recently. 4. AI features reduce click-through rates to external sites significantly. 5. Relations with publishers deteriorate as Google faces criticism for AI practices.
Google's cost cuts and declining publisher traffic signal potential revenue issues. Historically, such actions can lead to negative investor sentiment, as seen in Facebook's reduction of partnerships with media outlets causing stock dips.
The article discusses ongoing cost-reduction efforts that could affect performance and relationships impacting ad revenue, crucial for GOOG's business model.
The implications of declining referral traffic and strained relationships with publishers may impact ad revenue long-term, similar to how Yahoo struggled against Google in its heyday.