Alphabet shares slide over 9% as search ad slowdown and cash burn overshadow Cloud

Alphabet shares tumbled more than 9% in after-hours trading after third-quarter results revealed decelerating core search ad growth and negative free cash flow of roughly $9 billion. While total revenue rose 25% year-over-year to $127.6 billion and Google Cloud revenue surged 103% to $30.7 billion, results missed analyst expectations. Search ad revenue growth slowed to 12%, down from 17% in the second quarter. To counter deceleration and monetize generative AI, Google announced the global expansion of ads in AI Search features, including AI Mode and AI Overviews.