Google's AI search problem finally shows up in the earnings report, some investors believe

Google lost up to ten percent of its market value after third-quarter search revenue grew about 12 percent, missing the 15 percent analysts expected, with executive Philipp Schindler saying strong growth in AI mode queries had an impact because of lower monetization. Google Services revenue rose 11 percent to $96.3 billion, search and other advertising grew 12 percent to $63.4 billion, and YouTube advertising rose 9 percent to $11.2 billion, while operating income reached $39.2 billion at a 40.7 percent margin. Google Cloud revenue more than doubled year over year to $30.7 billion with operating margin rising from 23.7 to 36.2 percent, as capital expenditures hit $51.4 billion in the quarter.