You just described The Innovators Dilemma. You'd hope Google, considering how everyone reveres how well run it is would find ways to avoid it, but they didn't not. You know who used to avoid the Innovators Dilemma amazingly well? Apple. You know who does it really well now? Microsoft. They literally killed their OS revenue to grow the company. That's the equivalent of Google killing their search revenue for something new. It's hard to do, but you have to do it in tech.
>>And compared to Facebook which is still 99% dependent on Ads, Google is much more diversified (total revenue is north of 250 billion). They have cloud, youtube, docs, google play, all the alphabet experiments etc.
In 2022, Google was 80%+ directly dependent on Ads for revenue, and 10.3% indirectly dependent on it. Sure, Google does a lot of things but 90.3% of the actual money that keeps the lights on is advertising. Their revenue mix is extremely similar to Meta.