Science & Technology · 8 Advanced · October 30, 2026

Tech Giants Spend Billions on AI While Profits Decline

Photo: Sonny Sixteen via Pexels

Vocabulary

disappointing dɪsəˈpɔɪntɪŋ adjective

failing to meet expectations or hopes; causing disappointment

Alphabet lost over $500 billion in market value after disappointing investors with its latest financial results.

core business kɔr ˈbɪznɛs noun phrase

the main or central area of a company's operations that generates most of its revenue

Since ad sales represent the vast majority of Alphabet's revenue, this change has alarmed investors watching the company's core business weaken.

negative free cash flow ˈnɛgətɪv fri kæʃ floʊ noun phrase

a situation where a company spends more cash than it receives from its operations

Alphabet is spending more money than it brings in, with negative free cash flow exceeding $9 billion in the most recent quarter.

Article

Alphabet, Google's parent company, lost over $500 billion in market value on Thursday after disappointing investors with its latest financial results. Although total revenue grew 25 percent to $127.6 billion, the company's profits fell 25 percent during the quarter. The primary concern centers on Google's shift toward AI-powered search summaries, which have reduced the number of advertisements the company can display alongside search results. Since ad sales represent the vast majority of Alphabet's revenue, this change has alarmed investors watching the company's core business weaken.

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