Alphabet Shares Fall 13% on $9 Billion AI Spending Concerns
Alphabet's shares dropped 13% after third-quarter earnings missed expectations due to heavy AI investments and slower search ad growth. Net profit declined 25% to $26.17 billion despite a 25% revenue increase to $127.58 billion. The company reported a negative free cash flow of $9.1 billion and rising capital expenditures, raising market concerns about its AI spending.
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