KeyBanc Capital Markets analysts Justin Patterson and Sergio Segura said
Alphabet's AI search monetization is progressing slower than expected and could
continue to pressure the stock in the near term. Google Services (including
search) reported Q3 revenue below expectations, which the analysts said confirms
their pre-earnings concerns. They warned search revenue disappointed and could
weigh on the shares for one to two quarters as investors wait to see whether the
issue is temporary or structural. Alphabet shares were down more than 10% in
pre-market trading.