Alphabet shares record their worst day ever, shedding $500 billion in value
The company’s revenue missed estimates as capital spending on AI infrastructure climbed to $51.4 billion, fueling worries about cash flow and returns.
- 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.
167 Articles
167 Articles
Wall Street ends lower
NEW YORK — Stocks slid Thursday, with investors reassessing Big Tech's massive artificial intelligence spending spree as they digested high-profile earnings and crucial inflation data the day after the Federal Reserve held interest rates steady.
Alphabet, the parent company of Google, lost nearly $500 billion in market value in a single day after its shares plunged 12.6%. Investors are worried about...
Stocks slump, bonds leap as AI giants’ spending spooks investors - Regional Media News
SINGAPORE, Oct 30 (Reuters) - Tech shares slumped in Asia on Friday, the yen rose and bonds surged toward their biggest monthly gain in nearly three years as investors scurried to safety against worries that huge and rising AI spending may not deliver sufficient returns. [...]
U.S. stock indices ended in a negative bid on Thursday, and investors evaluated the status and corporate reports.
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