Alphabet shares record their worst day ever, shedding $500 billion in value
The Google parent’s results fueled worries that AI spending is outpacing returns as free cash flow turned negative for a second straight quarter.
- On Thursday, Alphabet shares plunged nearly 14 per cent in New York after the Google parent reported a revenue miss, wiping around £406 billion from its market value in one of Wall Street's biggest single-day routs.
- The company's quarterly report released late Wednesday revealed profits fell 25 per cent to £20 billion, missing Wall Street forecasts as Alphabet raised AI infrastructure spending to close to £40 billion.
- All three major US stock indexes fell Thursday, with the Nasdaq Composite losing 1.66 per cent and the S&P 500 declining 0.63 per cent, while tech and communication services sectors led decliners amid AI-driven spending concerns.
- "A drop this size blows a big hole in all the major indices, it's not a pretty picture," said Neil Wilson, an investor strategist at Saxo, as Fortinet and ServiceNow shares each dropped more than 20 per cent.
- Federal Reserve policymakers held rates steady on Wednesday, citing "elevated" price pressures, while Thursday's economic data showed the US economy grew faster than expected in the third quarter amid persistent systemic inflation.
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The Nasdaq index - with a high technological colour - lost 1.38%, the expanded S&P 500 index dropped 0.30% and the Dow Jones declined 0.25%. "Evidently, the month was particularly challenging for AI-based investors," comments AFP Angelo Kurkafas, Edward Jones' analyst. The latest episode was Alphabet's fallolade (Google's mother house) on Thursday, following financial performance below expectations for the third quarter. In particular, the group…
The Independent
The Independent (US)Google just lost $500 billion in a panic over AI
Google’s share price has dramatically plunged amid a panic over AI.
The American exchanges closed this Thursday in fall, especially the Nasdaq index, pressed by adjustments of positions in the technology and communication sectors. The trigger for the movement was the quarterly result of Alphabet, which showed below expected profits and indicated an increase in capex (capital spending) for the next year, reliving the fears of profitability of artificial intelligence companies (AI). The session also counted with a…
Record Drop for Alphabet Drags Down S&P 500
A historic drop for Alphabet's stock led the US stock market lower on Thursday. The S&P 500 fell 23.59 points, or 0.3%, to 7,720.39 for its first drop in four days. The loss came even through the majority of stocks within the index and across Wall...
Wall Street retreated on Thursday, with Nasdaq leading the losses, pressured by Alphabet, who fell after disappointing the market with quarterly results.
(New York = Yonhap News) Correspondent Kim Yeon-sook = On the 29th (local time), the three major US stock indices in New York closed lower across the board.
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