Google parent company drops in value amid search and advertising worries

Alphabet shares dropped by more than 13 percent, removing over $500 billion from the market value of the Google parent company. Weaker search and advertising sales caused this drop. The poor sales numbers raised worries among investors about heavy spending on artificial intelligence and how it affects Google's main business.

Context

Large technology companies are spending heavily to build and run new artificial intelligence tools. These massive costs sometimes worry the stock market when ad sales or other main income sources slow down. Companies like Google face constant pressure to balance expensive new technology investments with traditional profits.