GOOG AI Mode ads are “gaining traction”. Examples are text ads during trip planning, and putting clearly marked ads inside of AI

GOOGL -2.77% in AHs now - Munster conf. call comments: 1. Sundar says AI Mode and Overviews continue to yield more search clicks. Thats why Search grew at almost 17% in June, vs. 19% in March, and compared to around 10% a year ago. 2. Sundar says Waymo has delivered 1M home delivers through Walmart and DoorDash. Fun use case for autonomy. 3. New Google AI Mode ads are “gaining traction”. Examples are Text ads during trip planning, and putting clearly marked ads inside of AI Mode responses. This is important because it’s a lever that the company can continue to leverage on to keep Search growth rates in the mid teens (great at 17% in June). They did the same thing in 2010-2015 as the company slowing turned up Mobile search Ad coverage. 4. Waymo deliveries hitting 1M data point from the Alphabet call was likely over the past year. That would compare to about 26M paid rides over the past year. In other words, deliveries are just under 5% of usage. That number is going higher. 5. Company increase CAPEX guide by $10B or about 4%. Said next year will continue to have significant CAPEX investments. Currently the Street is looking for Google to grow CAPEX next year by about 35%. I'm at 55%. 6. CFO says to expect Search growth rates to decline starting in September because of tough comps. The Street is already there given Street growth for Sep is 15% (down from 16.5% in June), Dec 14%, CY27 13%