Alphabet earnings miss reflects first real sign that AI is taking a bite out of search

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Alphabet missed revenue estimates, with the search and other segment growing 12% to roughly $63 billion, below expectations for the second straight quarter. Google nevertheless reported 12% growth in search queries, creating a gap that suggests increased use of AI agents and conversational bots may be gradually cannibalizing its historic business. Search revenue growth slowed from 19% in the first quarter to 17% in the second and 12% in the third, while free cash flow turned negative for the first time in the company’s public history. By contrast, Google Cloud revenue more than doubled to nearly $31 billion and contracted backlog reached roughly $560 billion, supporting AI-related investment.

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Telemac
Telemachttp://cryptoinfo.ch
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