Alphabet shares fall nearly 13% as investors weigh AI spending
AI · First reported 29 Oct, 22:17 · Updated 23:21
Alphabet shares fell sharply on Thursday despite 25% year-over-year revenue growth. Reports pointed to heavy AI investment, negative cash flow and concerns about search advertising; Amazon also fell, while Microsoft’s shares slipped less than 1%.
- Alphabet shares fell 12.29% on Thursday, and the company’s market value declined from $3.97 trillion to $3.46 trillion.
- Alphabet’s revenue rose 25% year over year to $127.6 billion, while profits fell 25% and free cash flow was negative by more than $9 billion.
- The reporting links investor concerns to AI-related spending and questions about its returns, alongside pressure on Google Search advertising. Amazon shares also fell after its results, while Microsoft shares declined by less than 1%.
Summary written by Lux AI from 2 articles
Key facts
- Alphabet share decline
- 12.29% by Thursday’s close
- Change in market value
- $3.97 trillion to $3.46 trillion
- Alphabet revenue
- $127.6 billion, up 25% year over year
- Alphabet free cash flow
- Negative by more than $9 billion
- Google Cloud revenue
- Almost $31 billion, up 103%
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Background
- Earlier coverage reported that Google was adding in-chat editing for generated files in Gemini, with supported formats varying by platform. [21ecda81-5edd-4ac9-930b-80ce239d16a1]
- Another earlier headline reported a Gemini integration with Strava for personalized workout insights. [7e0897fb-9250-46bc-b796-d46170f5450c]
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- Corporation 50% (1)
- Public broadcaster 50% (1)
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