Alphabet Shares Dive 13% as AI Spending Saps Core Profits
Investors react to a profit miss, a larger‑than‑expected cash drain and a surge in AI costs, raising concerns about the tech giant’s direction.
Alphabet, the parent company of Google, saw its shares plunge up to 13% in early trading on Thursday.
The company missed profit expectations, posted a larger negative free cash flow than analysts had expected, and Wall Street hammered the stock after weaker‑than‑expected revenue from its core business.
Even though revenue grew 25%, a surge in artificial intelligence spending is being highlighted as the first real sign that AI is taking a bite out of search, while the firm kept its spending guidance for the year.
Original reporting
CNBC
Alphabet earnings miss reflects first real sign that AI is taking a bite out of search
Wall Street hammered Alphabet for an earnings miss that included weaker-than-expected revenue out of the company's core business.
Read the original →CNBC
Alphabet falls 13%, putting it on course for its biggest ever post-earnings drop
Alphabet reported a larger negative free cash flow than analysts had expected while maintaining its spending gudiance for the year.
Read the original →The Washington Times
Alphabet stock plummets as AI spending turns cash flow negative
Google's parent company, Alphabet, saw its shares fall as much as 13% in early trading Thursday after it missed profit expectations and reported negative free cash flow as artificial intelligence spending surged. Revenue grew 25%.
Read the original →
Facts this version was allowed to use
- Alphabet is Google's parent company.
- Alphabet shares fell as much as 13% in early trading on Thursday.
- Alphabet missed profit expectations.
- Alphabet reported negative free cash flow.
- Artificial intelligence spending surged.
- Alphabet revenue grew 25%.
- Alphabet fell 13%, according to CNBC.
- CNBC reported that Alphabet was on course for its biggest ever post-earnings drop.
- Alphabet reported a larger negative free cash flow than analysts had expected, according to CNBC.
- Alphabet maintained its spending guidance for the year, according to CNBC.
- Wall Street hammered Alphabet for an earnings miss, according to CNBC.
- The earnings miss included weaker-than-expected revenue from Alphabet's core business, according to CNBC.
- CNBC described the earnings miss as the first real sign that AI is taking a bite out of search.
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