Alphabet and Reddit slides tied to AI search economics

Alphabet lost about $500 billion in market value after shares fell 12.6% on concerns over its AI infrastructure spending. Google acknowledged that AI Mode monetizes worse than traditional search, while Reddit reported a drop in search traffic and will require users to log in.

• Alphabet shares fell 12.6%, wiping roughly $500 billion in market value
• Google's capex will reach $205 billion this year; free cash flow was negative $9 billion
• Search and related ads revenue grew 12% to $63.35 billion, down from 19% in Q1
• Reddit warned daily users could fall by a low double-digit percentage in Q4