Alphabet Shares Drop 13% Following Third Quarter Earnings Miss
Alphabet Inc. (GOOGL) experienced a significant after-hours selloff of over 13% following its third-quarter earnings report, which missed both revenue and earnings per share estimates. The decline was primarily attributed to weakness in search revenue growth, which slowed to 12% year-over-year due to low AI mode monetization, currency headwinds, and difficult year-over-year comparisons. In contrast to the search segment's struggles, Google Cloud showed strong performance with revenue accelerating by 103% year-over-year and a 50 basis point expansion in operating margin. While Alphabet's valuation currently trades at 14.8x TTM P/E—below its five-year average—investors remain concerned about whether AI tools like Gemini might cause a structural slowdown in traditional search revenue.
Tickers: $GOOGL
Topics: AI monetization Alphabet Inc. earnings Google Cloud growth Search revenue slowdown
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