Google query volume disclosures could build confidence, says BofA

BofA notes that Google revealed in a blog post that it now processes more than 5 trillion searches annually, versus 2 trillion in 2016. The disclosure suggests that Google’s query volume has grown at a 12% compound annual growth rate over 2016-2024, which the analyst notes is 7 points below the 19% CAGR for search revenues. The disclosure suggests strong usage growth may have contributed more to revenues than improved search monetization, according to the analyst, who adds that Google has “had impressive 8-year volume growth and monetization could be adding 6-7pts of growth annually.” The new disclosures could build confidence in Google’s ability to capitalize on new AI use cases over time, adds the analyst, who keeps a Buy rating and $25 price target on shares of Google parent Alphabet (GOOGL).