Alphabet earnings miss reflects first real sign that AI is taking a bite out of search
· Technology · CNBC
Wall Street hammered Alphabet following an earnings miss that revealed weaker-than-expected revenue in the company's core search segment during the quarter. Revenue in the search and other segment grew 12% from a year ago to roughly $63 billion, but missed estimates for the second consecutive quarter. At the same time, Google reported that search query growth on the platform reached its highest level in five years. The widening gap between usage and revenue highlights the growing pressure from artificial intelligence bots and agents disrupting traditional advertising models. Alphabet executives attributed the deceleration primarily to foreign exchange impacts, while the company also posted a negative free cash flow of $9 billion for the quarter.
Why it matters
The earnings miss signals the first tangible financial impact of artificial intelligence search tools on Google's core advertising revenue, raising questions about how traditional search giants will monetize query growth in the AI era.
Read the original report — CNBC
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