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Alphabet lost about $500 billion in market value after its shares fell 12.6% in a single session, following third-quarter results that showed revenue of $127.6 billion but net income down to $26.2 billion from $35 billion a year earlier. The decline came amid concerns that the company’s spending on AI infrastructure had risen to $51.4 billion for the quarter, uncertainty over the returns on those investments, and challenges to Search and advertising as chatbots become more widespread. Meanwhile, Google Cloud revenue nearly doubled to $30.7 billion. Investor confidence, however, will depend on Alphabet’s ability to turn its AI investments into sustainable profits and protect its advertising model.
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