Alphabet Inc. (GOOGL.US) reported weaker-than-expected third-quarter results, arousing concerns that AI is exerting pressure on its core search engine business, sending the stock lower by 9.75% in after-hours trading to USD290.52.

Alphabet's third-quarter revenue shot up 24.7% YoY to USD127.577 billion, below market expectations of USD128 billion. EPS stood at USD2.12, also below the market forecast of USD3.02, dented by a USD8.6 billion mark-to-market loss on equity investments. The company said the loss was tied to its investment in SpaceX.

Alphabet said during its earnings conference call that search revenue this quarter was affected by FX fluctuations. Query length in AI Mode is on average three times that of traditional search, but monetization capability remains weaker at the current stage.
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AASTOCKS Financial News
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