WASHINGTON, Oct 29 — Shares in Google parent Alphabet fell more than 10 per cent in after-hours trading yesterday as the company reported lower-than-expected profit and a slowdown in its advertising business while it maintained big spending on AI.

Net profit slid 25 per cent from a year earlier to US$26.2 billion (RM106 billion) in the July-to-September period, or US$2.12 per share, well short of expectations by analysts surveyed by FactSet.

Alphabet booked an US$8.7 billion loss on its equity investments, which it attributed to its stake in SpaceX, the Elon Musk-led company where shares have struggled since going public in June.

Revenue rose 25 per cent to US$127.6 billion, slightly below the roughly US$128 billion analysts had forecast.