Alphabet shares fell roughly 12.3% on Oct. 29 after third-quarter results, the stock's worst single-day performance ever. Adjusted EPS of $2.67 missed the $3.02 analysts expected, and revenue of nearly $127.6 billion fell short of $128.2 billion, though revenue rose 25% year over year and cloud revenue more than doubled. Google services revenue came in at $96.3 billion, more than $2 billion below forecasts, while search revenue growth slowed to 12% from 19% in the first quarter and 17% in the second. Chief business officer Philipp Schindler said strong growth in AI Mode queries affected search revenue because those queries monetize at lower rates, which has investors worried about AI's impact on search. Alphabet makes up 8.2% of Berkshire Hathaway's roughly $364 billion portfolio, and J.P. Morgan analyst Doug Anmuth said the results show a narrow margin for error.
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