GoKawiilAlphabet shares fall 11% as Google says AI Mode search earns less than traditional ads
Alphabet's stock dropped more than 11 percent on Wednesday, erasing over $500 billion in market value, after the company reported that its AI Mode search feature generates less revenue than its traditional text-link search ads. Google's Q3 revenue rose 25 percent year-over-year to $127.6 billion, but search revenue growth slowed to 12 percent from 14.5 percent a year earlier, even as capital expenditures on AI more than doubled to $51.4 billion. Chief business officer Philipp Schindler attributed the softer search growth to 'lower monetization' in AI Mode, according to Search Engine Land.