Alphabet Stock Tumbles
Alphabet shares fell after ad growth slowed and AI spending squeezed cash flow.
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· 18 outletsSummary
Updated Oct 29, 8:10pm ETAlphabet shares tumbled about 12.6%, wiping out roughly $500 billion in market value after disappointing earnings. Alphabet’s third-quarter revenue rose 25% to $127.6 billion but missed expectations, while net income fell about 25%. The results hit as tech companies spend heavily on AI data centers and computing power, raising investor worries about returns and risks to search ads. Google Search revenue grew 12%, slowing from the prior quarter, though Alphabet said search-query growth hit a five-year high. Alphabet said AI Mode carried lower ad monetization and said it was expanding ad experiments. Capital spending reached about $51.4 billion. Alphabet said capital expenditures would rise significantly in 2027.
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From the left
Left-leaning outlets framed the sell-off as a warning that the AI spending boom is straining even the strongest tech balance sheets. CNN emphasized investor doubts about whether costly AI bets can pay off while search advertising growth weakens. It also cast the drop as a historic market shock, not a routine earnings stumble.
From the right
Right-leaning outlets led with the earnings miss and AI buildout turning into a cash-flow problem for investors. The New York Post stressed that AI costs were battering Alphabet’s cash flow and stock value. Fox Business focused on surging AI and cloud demand, while tying the pressure to weaker search advertising as AI reshapes the core business.
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