P203news.today203Sat 31 Oct05:30
NEWS.TODAY
BUSINESS 3/9
Alphabet shares plunge 12% after profit and search slowdown disappoint
Alphabet's shares fell more than 12% after third-quarter results showed profits down 25% and search advertising growth slowing to 12%.
Alphabet reported third-quarter revenue of $127.6 billion, up 25% year-over-year, but missed analyst expectations and saw net profit fall 25% to $26.2 billion. Search revenue grew just 12%, down from 17% the previous quarter, as Google's new AI search summaries reduced the number of advertisements the company could sell. The company also reported negative free cash flow of $9.1 billion, more than triple analyst expectations, driven by spending on AI infrastructure. Chief Financial Officer Anat Ashkenazi said capital expenditures would increase significantly in 2027. The stock fell more than 12% in extended trading, wiping around $500 billion from Alphabet's market value in what analysts said was the company's worst day since going public 22 years ago.
From 14 outlets:
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Summary written by AI from these reports. See news.today/ai
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