Is AI Killing Google's Golden Goose?
Yahoo Finance ·
It's getting hard out there for the tech giants. Just a week after Meta Platforms tumbled on its third-quarter earnings report, as otherwise strong results were overshadowed by negative free cash flow, investors wiped $500 billion in value from Alphabet (Nasdaq: GOOG) (Nasdaq: GOOGL) after the company disappointed in its earnings report, with the stock falling 12%. The Google parent posted 25% revenue growth to $127.6 billion, but it wasn't enough to meet expectations at $127.9 billion. Still, 25% growth for a company of this size is impressive. Operating income rose from $31.2 billion to $40.6 billion, with operating margin ticking up from 31% to 32%. Generally accepted accounting principles ( GAAP ) earnings per share fell from $2.87 to $2.12 as the company reported other expenses of $8.2 billion, including a $12.4 billion loss on equity securities, primarily due to its investment in SpaceX, whose stock fell in the third quarter. As a result, earnings per share missed the analyst consensus at $3.01, though investors should focus on the operating income figure.
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