Alphabet shares record their worst day ever, shedding $500 billion in value
The Google parent’s worst day on record erased about $500 billion in value as investors questioned whether its AI spending can pay off.
- On Thursday, Alphabet shares plummeted approximately 13%, erasing roughly $500 billion in market value after the company reported disappointing third-quarter earnings that marked its worst one-day stock drop in history.
- Alphabet reported negative free cash flow of $9.1 billion, driven by capital expenditures exceeding $51 billion as the company aggressively funds artificial intelligence infrastructure; management signaled spending will increase significantly in 2027.
- While total revenue of $127.6 billion missed the $128.2 billion estimate, Google Cloud revenue surged 103% to more than $30 billion, offering a bright spot amid broader earnings disappointment.
- The sell-off dragged major US indexes lower, with the Nasdaq falling 1.4% as investors reassessed AI spending risks, while construction giant Caterpillar plunged 9.2% reflecting broader industrial concerns.
- Alphabet has committed to more than $1 trillion in multiyear spending agreements, yet analysts warn the stock may face pressure until search revenue growth accelerates amid intense artificial intelligence competition.
264 Articles
264 Articles
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.
SHARES of Alphabet, the parent company of Google, yesterday recorded the biggest one-day drop in the company's history. Their value fell almost 13 percent, wiping about $500 billion from Alphabet's market value.
Google Parent Alphabet's Shares Crash 13%, Wiping Out $500 Billion In Market Value Amid AI Spending Concerns
Google's parent company- Alphabet, saw a sudden fall in its stock price on Thursday, October 29, owing to its quarterly earning results that have put investors on alert due to the growing spending on artificial intelligence (AI) and the gains from
Google's huge investments in artificial intelligence really spooked investors.
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