Google admits AI search monetizes worse than organic, stock drops ~12% on earnings
Ars Technica AI · rss · 2026-10-30
Alphabet shares fell nearly 12% after Q3 earnings — one of its worst post-earnings drops ever — after the company admitted AI search earns less than organic search while signaling higher AI spending next year. Revenue hit $128B, up 25% YoY, but net income of $26B+ was $9B lower; EPS of $2.12 badly missed the $3.02 consensus. Google Cloud beat expectations, crossing $30B in revenue.
More from Venture
- Anthropic files for potential $2T IPO after $16.3B H1 revenue, first $1B operating profit — PeterDiamandis · 2026-10-30
- Unitree Q3 revenue up 69.9%, AgiBot discloses ~$300M H1 2026 revenue — Scobleizer · 2026-10-30
- Thrive's ADT buy praised as a smart, AI-forward move by Joshua Kushner — saranormous · 2026-10-30
- Cohere's investor list is mostly government-linked buyers, notes analyst — Afinetheorem · 2026-10-30
- House Dems push resolution opposing taxpayer bailouts for failing AI companies — michalmalewicz · 2026-10-30
- Backlink Pilot v3: from 500 submissions a run to 2-4 a day, rebuilt as an open-source AI agent playbook — sujingshen · 2026-10-30