Google shares drop ten percent following heavy artificial intelligence spending

Google shares fell ten percent on October 28, 2026, after the company reported increased cash burn from artificial intelligence expenses. Financial Times Tech, the Financial Times, and the Wall Street Journal all reported that stock prices tumbled ten percent. Financial Times Tech specified that the decline followed a fifty-one billion dollar artificial intelligence outlay. [1][4][6]

The company stated that its new artificial intelligence mode hurt traditional search performance. According to Financial Times Tech, sales and profits missed market expectations. The Wall Street Journal separately reported that growth in Google search revenue slowed during the period. [1][6]

The financial results come as Google expands commercial features within its artificial intelligence offerings. Unite.AI reported that Google rolled out artificial intelligence mode advertisements across ten countries, while also launching multiturn advertisements inside the United States. [7]

Google operates as a major technology firm focused on online search, advertising, cloud computing, and consumer electronics. The search engine handles billions of queries every day, holding about ninety percent of global searches and making most of its money from advertising auctions. [8][9]