Google's Stock Falls Because of AI Costs
Alphabet, the company that owns Google, saw its stock price fall more than 10% on October 28, 2026. This happened after the company announced its financial results for the third quarter. Investors are worried about the big costs of developing artificial intelligence (AI).
The company's total revenue was $127.58 billion, which was a little less than expected. Google's main business, advertising, also made less money than analysts predicted. The company spent a lot of money on building data centers and developing AI chips.
Because of these high costs, the company's free cash flow was negative for the first time. This means Alphabet spent more money than it earned. The company hopes its Google Cloud service and AI products will help make more money in the future.