Alphabet shares drop due to AI spending and weak revenue
Google's parent company, Alphabet, experienced a record market drop as its third-quarter sales failed to meet expectations and AI investments raised concerns about returns.
Alphabet Inc. shares lost more than 13 percent in value as third-quarter sales fell short of analyst projections and investor concerns grew over the cost of the company's artificial intelligence investments.
Google's parent company, Alphabet, announced that it generated $111.2 billion in sales, excluding traffic acquisition costs, in the third quarter, but this figure lagged behind analyst projections. Advertising revenues from the search engine and other channels recorded their slowest growth rate in five quarters, failing to meet expectations. This situation heightened concerns regarding the future of the core business that funds massive artificial intelligence investments.
Sources
- bloomberg.com · Link