Artificial intelligence cuts the wings of the giant. Huge drop in Google's value
Alphabet, Google's parent company, reported a 25% revenue increase to $127.6 billion, but profits fell by 25%. The company faced a negative cash flow exceeding $9 billion due to AI implementations affecting ad clicks. Alphabet's stock dropped to a six-month low, losing $500 billion in market capitalization. Amazon also disappointed investors with a record cash flow deficit of $42 billion despite an 11% sales increase. Microsoft reported a smaller stock decline and strong revenue growth, but investors seek proof of AI's profitability. Experts warn the tech industry must balance AI investments with traditional revenue stability.