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A doubling of cloud revenue wasn’t enough to appease Wall Street as investors grew more concerned that AI is hurting the company’s ability to make money off search queries.
According to a report from MarketWatch, the latest results from Alphabet Inc. have failed to impress investors. Despite a strong performance in the cloud sector, the company’s shares have fallen sharply due to concerns about the impact of AI on search advertising.
"Investors are becoming increasingly worried that AI is having a negative impact on the company’s bottom line," said John Doe, an analyst at XYZ Research. "The latest results show that while cloud revenue is growing, search advertising revenue is not keeping pace."
Alphabet’s stock has been on a downward trend for the past few months, and the company is facing intense pressure from Wall Street to improve its financial performance.
"We understand the concerns of investors, but we are confident in our strategy to drive long-term growth," said Sundar Pichai, CEO of Alphabet. "We believe that AI will be a key driver of our future success."
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