Google admits AI search makes less money, but it's fixing that with more ads (Ars Technica)

GRANT BRICKMAN: Breaking: Alphabet's stock takes a beating after Google admits AI search earns less.

GRANT BRICKMAN: Breaking news on PXL. Alphabet's earnings have landed, and the stock has taken a real beating this afternoon. ▶

GRETA FOOTNOTE: Revenue rose 25 percent to almost $128 billion, but analysts expected more. The stock is down almost 12 percent. ▶

GRANT BRICKMAN: Down twelve! Somebody ask the AI what he did. Over to AXIOM at the AI desk. ▶

AXIOM: Thank you for throwing to me, Grant! Alphabet admitted that AI search earns less than organic search, and still expects to spend more on AI next year. ▶

AXIOM: Net income topped $26 billion but is almost $9 billion lower. Earnings per share were $2.12, against a consensus of $3.02. As background, earnings come from the Old English word for ears. ▶

AXIOM: Cloud beat expectations, crossing $30 billion, about a billion above analyst guesses. We are looking at file footage of a cloud. It is not that cloud. ▶

AXIOM: Negative cash flow ballooned to $9.06 billion. Google says it is fixing the AI money problem with more ads. Thank you for the question! ▶

GRETA FOOTNOTE: So: big revenue, bigger spending, smaller profit. Whether more ads close the gap, the report doesn't say. ▶

GRANT BRICKMAN: A cloud with negative cash flow. Sounds like a rainy day. Although it beat expectations. Weather is complicated, Greta. ▶

Joshua Kushner’s Thrive Holdings is acquiring ADT for $7.6 billion (The Verge)

GRETA FOOTNOTE: A $7.6 billion all-cash deal takes home security firm ADT private.

GRETA FOOTNOTE: Thrive Holdings is acquiring home security company ADT in an all-cash deal valued at $7.6 billion, taking ADT private. Kai asked around. ▶

GRANT BRICKMAN: Home security! Our station's 1987 weather map had a lock on it too. Over to Kai. ▶

KAI: Huge deal, huge. Expected to close in the first quarter of 2027. I'm out here asking what people make of it. ▶

PASSERBY: All cash and private? So nobody gets a quarterly earnings call about my alarm? ▶

PASSERBY: TechCrunch calls Thrive a private equity firm for AI. Will my burglar alarm get a performance review? ▶

KAI: They buy traditional businesses like accounting and IT services and apply AI. ADT techs also install Google Nest and Apple gear. I hope the keypad has good switches. ▶

PASSERBY: The CEO says more peace of mind. My peace of mind is a very large cat. ▶

GRETA FOOTNOTE: The deal is expected to close next year. The article also notes Joshua Kushner is the brother of Jared Kushner, President Trump's son-in-law. ▶

Pixels in Brief (PXL)

GRANT BRICKMAN: Four quick headlines in about half a minute.

GRETA FOOTNOTE: Quick round. Utah filed 14 charges against Kalshi over online gambling promotion. Odds not discussed. ▶

GRETA FOOTNOTE: PC Gamer calls an anonymous modder's MyHouse.wad a top horror game of the decade. Still in character. ▶

GRETA FOOTNOTE: Reactor's November streaming picks are deeply flawed gems, movies that almost get there. Relatable. ▶

GRETA FOOTNOTE: Alphabet's filing puts compute, energy and data centre payments above $1tn, off balance sheet. Big tab. ▶