Alphabet Loses a Record $511 Billion as AI Mode Weighs on Search

Oct 29, 2026
Alphabet shares fell more than 13% after search, ad and YouTube sales missed forecasts. Google said AI Mode queries earn less than regular searches.

Alphabet shares fell more than 13% on Thursday, the company's biggest market value loss on record, after third-quarter search and advertising sales missed forecasts, Bloomberg reported via Financial Post. At 9:35 a.m. in New York the stock was down 13% at US$281.37, wiping US$511 billion from Alphabet's value.

Sales excluding partner payouts were US$111.2 billion, short of analyst projections. Ad sales from search and other channels, roughly half of revenue, grew at the slowest pace in five quarters. Google services revenue was US$96.3 billion against estimates of US$98.4 billion, and YouTube advertising sales of US$11.2 billion also fell short.

On the earnings call, Google chief business officer Philipp Schindler said the growing use of AI Mode had weighed on results because AI queries have "lower monetization." He said Google plans to bring more ads to AI Mode. JPMorgan analysts said the reaction shows "the margin for error" for a hyperscaler spending hundreds of billions on AI infrastructure. The drop came a day after Alphabet reported its Q3 results and took AI Mode ads global.

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