Key facts
- Alphabet's stock was set to open down 10.5% on Thursday.
- The decline would represent a loss of over $400 billion in market capitalization.
- Third-quarter search revenue was $63 billion, missing analyst expectations.
- Google is introducing ads in its AI Mode to more users globally.
Alphabet's stock was poised for a significant decline on Thursday, potentially wiping out over $400 billion in market value, after the company's third-quarter earnings report revealed lower-than-expected revenue from Google's AI search mode. The parent company of Google reported search revenue of $63 billion, a mere 1% increase from the prior quarter, a stark contrast to previous quarters where search revenue had consistently beaten estimates. CEO Sundar Pichai acknowledged the lower monetization from AI Mode queries, despite noting strong growth in AI-driven search queries, and announced plans to introduce ads within AI Mode to a wider user base, including internationally.