AI is hurting Google’s core business. Alphabet’s $500 billion rout explained
- • Alphabet shares fell 13% on Thursday, its worst day since Google listed in 2004, wiping out about $500 billion.
- Search revenue grew 12% to $63.35 billion, below forecasts and down from 17% growth in the previous quarter.
- Google says part of the slowdown is that AI Mode earns less per query than traditional search.
- Capital spending hit $51.4 billion in the quarter, and free cash flow turned negative.
Source: firstpost.com
Get 100 stories a day on the app
Read, watch & listen · Free on iOS & Android
