Alphabet shares fall 13% as Google Search revenue misses forecasts
Google Search revenue rose 12% to $63.3 billion, below Wall Street expectations, and Google's chief business officer linked the miss to AI Mode growth.
Alphabet's share price dropped 13% on October 29, 2026, wiping $500 billion from the company's market value, after Google Search quarterly revenue came in below Wall Street expectations, according to pcgamer.com.
Search revenue for the quarter was $63.3 billion, up 12% year-over-year but short of analyst forecasts. Google senior vice president and chief business officer Philipp Schindler said strong growth in AI Mode queries lowered monetization.
Google said it is scaling ads within AI Overviews and AI Mode to more users and queries, including in international markets and with multiturn ads in the US.
Spending and cash flow
The company reported negative cash flow of $9.1 billion at the end of September, against initial projections of no more than $3.5 billion. Google spent $51.3 billion on AI in the last quarter.
Earlier in October 2026, $1 trillion was wiped from AI-related stocks as investors sold off shares. Google went public in 2004, has said Search saw its fastest year-over-year query growth rate in half a decade, and has committed to data centre and related purchases in excess of $1 trillion.
Quick answers
How much did Alphabet shares fall?
Alphabet's shares fell 13%, wiping $500 billion from its market value.
What was Google Search revenue for the quarter?
Google Search revenue was $63.3 billion, up 12% year-over-year but below Wall Street expectations.
Why did Google say monetization was lower?
Philipp Schindler said strong growth in AI Mode queries lowered monetization.