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The shares of Google, more precisely, its parent company Alphabet, ended the previous trading week with major cuts. The company shares ended the day of trade on Friday, February 7, with losses of over 3 per cent.
Google's Revenue Problem
This came to pass after the company attained revenue numbers of USD 96.47 billion, slightly below the LSEG forecasts of USD 96.56 billion.
The parent company the dominant search engine Alphabet, saw a 12 per cent revenue growth (YoY).
The company's main sources of revenue, the YouTube advertising, search business, and services segment, have shown signs of slowing.
AI, Will It Work?
In addition, one of the biggest drivers behind this recent slump in prospects emerges from the buzzword of the town, AI.
The realm of Artificial Intelligence is a fast-moving landscape, and the developments developing from behind the scenes of the chatbots and AI tools are as fast as the processing capabilities of these systems.
This came to pass after the company attained revenue numbers of USD 96.47 billion, slightly below the LSEG forecasts of USD 96.56 billion. | Image Source: Wikipedia (Representative)
DeepSeek threw a spanner into many American wagons, fueled by AI, and this also raised questions on the viability of the billions poured into the business in American companies.
In addition, the prospects of major tech companies like Meta, Microsoft, and teh aforementioned Alphabet failing to find a major breakthrough in the AI business has cast aspersions on what road lies ahead.
Alphabet Shares In Red
These factors have spilled onto the developments at Wall Street as well. The company shares as suggested before closed in red on Friday.
The company shares dipped by 3.19 per cent or USD 6.17, after opening at at a lower position that its previous closing.
In the past week of trade, the shares of Google's parent company lost a cumulative of 7.33 per cent or USD 14.81.
This took the overall of the company shares down to USD 187.14. When we look at the larger picture, in the past month, the company shares have dipped by a total of USD 9.57 or 4.87 per cent.
