MOUNTAIN VIEW, California — Shares in Google’s parent company Alphabet fell more than 12%, wiping roughly $500 billion off its market value, even as the company reported a 25% jump in quarterly revenue to $127.6 billion.
The slide took Alphabet’s value from about $3.97 trillion to $3.46 trillion, according to the BBC, as investors weighed heavy spending on artificial intelligence and concerns that Google’s AI-powered search features could eat into its core advertising business.
Chief business officer Philipp Schindler said Google’s “AI mode,” which answers questions conversationally, was eating into revenue from ads shown alongside traditional search results, though he said he felt “very good about our trajectory.”
Other technology giants also reported results. Amazon shares fell about 6% in after-hours trading after it posted revenue of $201 billion, up 11%, alongside a cash flow figure of negative $42 billion as it pours money into data centres.
Microsoft reported revenue of $92.3 billion, up 19%, with its cloud business growing 30% to $63 billion.
Sources: BBC News
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