Alphabet Shares Drop Amid Record Post-Earnings Loss
· Business · CNBC, MarketWatch
Alphabet shares fell over 10% in premarket trading following a double miss on earnings per share and revenue for the quarter. Investors are concerned that AI-driven search tools are eroding Google's core search volume, which is a primary revenue driver for the company. While Google Cloud revenue more than doubled, the broader market remains focused on the potential threat to the company's high-margin search model. Meanwhile, Microsoft shares rose after reporting strong Azure growth and lower-than-expected capital expenditure, which has negatively impacted smaller neocloud firms like Coreweave and Nebius.
Why it matters
The market reaction reflects deep investor anxiety regarding the long-term impact of AI on Google's dominant search business model.
Read the original report — CNBC
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