Prof G Markets · Thursday, October 29, 2026
Google shares fell as much as 11% after reporting a decline in free cash flow down to negative $9.1 billion and an abrupt slowdown in core search advertising growth. Gil Luria noted that investors are reacting to concerns that the shift to AI is impacting Google's most lucrative search business.
“Google's earnings, meanwhile, disappointed investors despite revenue growth in the third quarter. Advertising revenue fell short of analyst expectations, and the company reported a decline in free cash flow. Shares dropped as much as 11% following that report.”
“It's the other part. It's that core advertising business. We have long been worried about that that business would be negatively impacted by AI. And it is Google search that was the big weakness.”