Google loses $500 billion in value as AI search summaries hit ad revenue

Google's parent company Alphabet saw its stock plummet to a six-month low, wiping out roughly $500 billion in market value, after the tech giant revealed that its AI-powered search summaries are impacting advertising revenue. The disclosure, made during a recent earnings call, spooked investors who fear the shift to AI-generated answers could reduce clicks on traditional ads. The sell-off underscores broader anxiety on Wall Street about how generative AI will reshape the digital advertising landscape. Alphabet's shares dropped sharply as analysts questioned whether the company's heavy investment in AI will pay off or cannibalize its core search business. This development matters because Google's ad revenue is the engine of its profits, and any slowdown there could ripple across the entire tech sector. Investors are now watching closely to see how Google adapts its ad model to AI while maintaining growth. The market reaction signals that the era of AI-driven search may bring both opportunity and disruption for the world's largest online advertiser.