Alphabet shares slide after revenue miss and AI spending plan

Alphabet shares fell more than 12% on Thursday after the company reported third-quarter revenue below analysts’ expectations and reaffirmed a capital-spending plan of up to $205 billion for fiscal 2026, intensifying investor concerns about the returns from its artificial-intelligence investments. The shares had dropped about 9% to $295.20 within an hour of Wednesday’s market close, then ended Thursday down more than 12%, according to reports. The decline followed results showing Alphabet’s revenue rose 25% year over year to $127.58 billion, below analysts’ average estimate of $127.97 billion. Net income for the July-to-September quarter was $26.17 billion, down from $34.98 billion a year earlier. The company also reported an $8.7 billion loss on equity investments. Its reported earnings were $2.12 per share, though reports said it was not clear whether that figure was comparable with analysts’ estimates. Alphabet reaffirmed its fiscal 2026 capital expenditure range of $195 billion to $205 billion, which it had raised in July from $180 billion to $190 billion. The spending is intended to expand computing capacity and support AI development. Investors have been weighing the cost...