Why Alphabet’s stock could see its worst drop in years after the latest results

Alphabet reported third-quarter sales of $111.2 billion, excluding partner payouts, for the period ending September 30. According to The National UAE and The National Business, this figure fell below the $111.3 billion average projected by analysts. Net income was reported at $2.12 per share, which was significantly lower than the $2.99 Wall Street estimate. The company's shares fell by more than 10 per cent in after-hours trading.

The National UAE and The National Business report that the company's equity investments resulted in an $8.7 billion loss, a reversal from the gains seen in the previous year and second quarter. MarketWatch noted that while cloud revenue doubled, investors remain concerned that artificial intelligence may be impacting the company's ability to generate profit from search queries.

Both The National UAE and The National Business stated that Alphabet's massive spending on AI infrastructure has reached record levels, placing pressure on the company to justify these costs through its integration of AI into products like Gmail, YouTube, and its search engine. Sales from the search division also disappointed.

Brief written by urgent.news from MarketWatch, The National UAE, The National Business — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.