Google parent Alphabet’s earnings disappoint Wall Street amid stiff AI competition

Revenue slowdown reflects challenging year' firm has had and 2025 may be year it loses competitive edge, say analysts

Shares of Google's parent company Alphabet fell more than 6% after the company reported a slight miss in expected revenue on Tuesday. The company reported $96.5bn, compared with analyst expectations of $96.67 bn. The company surpassed investors' expectations of $2.13 in earnings per share, however, with $2.15 in EPS.

Q4 was a strong quarter driven by our leadership in AI and momentum across the business," Alphabet chief executive Sundar Pichai wrote in a statement. We are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies."