Alphabet’s AI Search Monetization Struggles Trigger Record Stock Plunge
Alphabet’s Q3 earnings reveal a critical gap between surging AI search usage and declining ad revenue, causing a record stock drop. While query volume hits a five-year high, AI Mode generates less income than traditional search, prompting Google to expand ads into AI interfaces globally. The company continues massive infrastructure spending, leading to negative free cash flow, even as cloud revenue surges to offset search losses.