Alphabet's Q3 results show revenue rise but AI costs trigger $500bn market value loss
Alphabet Inc. posted a 25% year-over-year revenue increase to $128 billion in the third quarter, but AI-driven search generated lower ad earnings and left the company with a negative free cash flow of $9. 06 billion, according to Ars Technica, in Mountain View, California. Earlier, CNBC said the quarter’s revenue of $127.
58 billion beat estimates while free cash flow fell to $9. 07 billion, below analysts’ forecasts. The Globe and Mail reported a 25% drop in net income and a surge in AI-related capital spending that turned the profit outlook negative. Subsequent reports from CNBC noted the stock slipped nearly 10% as AI-driven search altered advertising revenue, and The Register added that AI search revenue lagged traditional ads despite record query growth, further pressuring earnings.
