Alphabet shares record their worst day ever, shedding $500 billion in value
The Google parent’s revenue miss and negative free cash flow deepened worries that heavy AI spending is not yet paying off.
- On Thursday, Alphabet shares tumbled 12.6% after reporting weaker-than-expected summer growth, dragging the Nasdaq Composite down 1.37% and the S&P 500 down 0.30%.
- Investors are reassessing the tech industry's massive AI spending spree following Alphabet's report, as the company burned through $51 billion in property and equipment purchases.
- While tech struggled, Eli Lilly climbed 6.6% on strong weight-loss drug sales, and DoorDash rose 5.6% after agreeing to buy Instacart in a $17 billion deal.
- Federal Reserve policymakers held interest rates steady Wednesday, while market analyst Ross Mayfield told Reuters that investors are distinguishing between companies that can fund AI ambitions and those that cannot.
- Earnings season has crossed the halfway point with 253 S&P 500 companies reporting; 81% have beaten analyst expectations per LSEG data, driving aggregate profit growth estimates to 31.0% year-on-year.
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My Mother Lode
The Seattle TimesHow major US stock indexes fared Thursday 10/29/2026
A historic drop for Alphabet’s stock dragged the U.S. stock market lower. The S&P 500 fell 0.3% Thursday, its first drop in four days. The loss came even though the majority of stocks within the index and across Wall Street rose. The Nasdaq composite tumbled 1.4%, and the Dow Jones Industrial Average fell 0.3%. Google’s parent company was the main reason for the losses, and had its worst drop on record after reporting weaker growth for the summe…
All three major New York stock indices fell as Alphabet's third-quarter earnings fell short of market expectations and concerns over AI investment grew. In particular, the plunge in Alphabet's stock price had a negative impact on technology stocks in general, and major semiconductor-related stocks, including the Philadelphia Semiconductor Index, closed lower in tandem.
According to unsatisfactory figures from Google's mother Alphabet, the share falls by 13 percent and attracts the most important US indices. On Wall Street, there is growing doubt as to whether the cost of global AI expansion will pay off.
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