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'We feel very good about our trajectory here' says Google as its stock tanks by $500 billion

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'We feel very good about our trajectory here' says Google as its stock tanks by $500 billion

Even during a good financial year, a big tech investor is seemingly never satisfied. Case in point, while Google Search grew by 12% year-over-year and made $63.3 billion this past quarter, parent company Alphabet's share price took a pretty spectacular tumble.

Despite making an amount of money the mere thought of which sucks the air right out of my lungs, Search's revenue this quarter was actually below Wall Street's expectations. As a result, Alphabet's shares are down 13% and $500 billion has been wiped from its market value (via The Financial Times).

The share price is continuing to fluctuate and, according to CNBC, it could be the worst post-earnings call decline ever. This follows $1 trillion worth of air escaping from the AI party balloon earlier this month, due to anxious investors widely selling off stock. So, how did Alphabet get its ABC's so wrong? Long story short, Google's own AI features may be eating into its Search revenue.

This is despite Search apparently seeing the fastest year-over-year query growth rate in half a decade. During Alphabet's most recent earnings call, Google's senior vice president and chief business officer Philipp Schindler was asked to explain this 'disconnect'.

"It's worth noting that the strong growth in AI Mode queries had an impact because of the lower monetization we were seeing in AI Mode," Schindler says. "To be clear, we feel very good about our trajectory here.



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