Alphabet shares plunge over 10% as Google's AI search struggles to make money
Serving tech enthusiasts for over 25 years.
TechSpot means tech analysis and advice you can trust.
What just happened? Alphabet has given investors another reason to worry about whether the AI spending frenzy will ever pay off. Shares in Google's parent fell more than 10% in after-hours trading as disappointing earnings and slower search growth overshadowed its cloud business. In even worse news for its AI ambitions, Google's AI Search mode is struggling to turn extra queries into equivalent advertising dollars.
Alphabet reported quarterly revenue of $127.6 billion, up 25% year over year, but earnings of $2.12 per share missed expectations of around $3.01. Its net income fell to $26.2 billion, though an $8.7 billion loss on equity investments contributed to the decline.
In what has become a familiar sight among tech giants, the spending figures are eye-watering. Capital expenditure reached $51.4 billion during the quarter, more than double...
Copyright of this story solely belongs to www.techspot.com. To see the full text click HERE
