Google hit by the AI revolution it helped spark

Google's advertising revenue has significantly declined, leading to a 10% drop in shares. The rise of AI is causing users to rely less on search engines, impacting traditional advertising exposure. In Q3 2026, Google's services revenue fell short of expectations, reaching $96.3 billion. Additionally, the company reported a negative free cash flow of $9.1 billion due to heavy investments in AI, necessitating borrowing for capital expenditures of $51.4 billion. This situation mirrors Meta's recent struggles with negative cash flow.