Alphabet search revenue misses forecasts; shares slip after hours
Alphabet reported search and other revenue of about $63 billion for the quarter, up 12 percent but below analyst estimates for a second straight quarter. The company blames mainly currency effects and expects those to worsen in the fourth quarter. Free cash flow came in at negative $9 billion, three times the estimated deficit. Shares fell roughly 10 percent in after-hours trading following the announcement. Alphabet says it will keep investing in AI infrastructure and services, including its Gemini model.
Key facts
- Free cash flow was negative $5.9 billion in the second quarter, the first such result in company history.
- Gene Munster of Deepwater Asset Management says AI-powered personalized bots could become a primary commerce entry point.
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Why it matters
Weaker search revenue and negative cash flow raise questions about the cost of Alphabet's AI investment.
What changed
First published from CNBC