Alphabet shares record their worst day ever, shedding $500 billion in value
The selloff followed a revenue miss and negative free cash flow as Alphabet’s AI spending topped $51 billion in the quarter, analysts said.
- On Thursday, October 29, 2026, Alphabet Inc. shares plunged 12.6%, erasing more than $500 billion in market value after the company reported disappointing quarterly results, triggering a broader sell-off across major U.S. indexes.
- Heavy infrastructure spending drove the plunge; capital expenditures topped $51 billion during the quarter, pushing Alphabet's free cash flow to negative $9.1 billion, with executives warning spending would increase significantly in 2027.
- Alphabet reported quarterly revenue of $127.6 billion, up 25% year over year, though search revenue grew just 12%, missing expectations; Google Cloud revenue soared 103% to $30.7 billion, driven by TPU systems.
- Analyst Luke Lango argued investors are punishing Alphabet for the "wrong reason," focusing on short-term cash burn instead of long-term strategy; Bank of America warned of "tougher comps" pressuring the company through next year.
- Future commitments for data centers and energy costs exceed $1 trillion, underscoring massive capital requirements facing tech giants as this historic sell-off reflects heightened investor sensitivity to earnings misses in the AI-driven market cycle.
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As a result, the Nasdaq index (which brings together technological values) drops by 2.26%.
Shares of Alphabet, Google's parent company, fell nearly 13% after reporting third-quarter earnings. It was the biggest one-day drop since the company went public in 2004. According to Yahoo Finance, Alphabet lost about $482 billion in market value, marking the second-biggest one-day loss for a U.S. company after Nvidia, which lost $593 billion in January 2025. Although the results showed strong growth in Google Cloud, Google's search revenue fe…
Google’s Loses R8.3 Trillion In Stock-Market Value Over AI Ambitions
Alphabet’s reported $500 billion sell-off exposes the strain between AI spending and search income. The post Google’s Loses R8.3 Trillion In Stock-Market Value Over AI Ambitions appeared first on 2oceansvibe News | South African and international news.
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