Alphabet shares plunge 12% on record post-earnings drop, AI search draws users but cuts ad revenue

Alphabet shares fell nearly 12% on Thursday, extending losses to become the worst post-earnings decline in 22 years, erasing about $465 billion in market value. Search revenue grew 12% to $63.35 billion, missing expectations, while AI Mode searches generate less ad income than classic searches. Cloud revenue surged 103% to $30.7 billion, but the search slowdown overshadowed the gain.