AI: Costly AI Race - Alphabet Scares Wall Street
The cloud division doubles its revenue, yet the Alphabet share plummets: advertising business and profit disappoint, AI expansion devours billions.
Alphabet, Google's parent company, reported a 25% increase in revenue to $127.6 billion for the third quarter, but missed Wall Street expectations. The company's advertising revenue, primarily from Google search, grew 12% to $63.4 billion, below analyst estimates of around $65 billion. YouTube's advertising revenue was $11.2 billion, also slightly lower than expected.
Alphabet's profit was $26.2 billion, a 25% decrease from the previous year, with earnings per share of $2.12, compared to $2.87 last year and less than the nearly $3 expected by the Wall Street.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
