Alphabet shares record their worst day ever, shedding $500 billion in value
The company said search and ad sales missed forecasts as AI spending pushed free cash flow negative and erased more than $500 billion in market value.
- Alphabet shares fell 12.6%, erasing $500 billion in market value in the company’s worst one-day decline.
- Alphabet’s quarterly revenue and advertising sales missed expectations, including weaker growth in search advertising.
- Alphabet has committed to more than $1 trillion in future AI-related spending, raising concerns about the returns on those investments.
- The sell-off spread across markets, pushing the Nasdaq down 1.38% and lowering shares of Caterpillar and other companies.
329 Articles
329 Articles
A seemingly sound financial report sent the share price of Google's parent company plummeting, creating the second-largest one-day loss in world history - but what happened?
Google earns less on demand through artificial intelligence, and the rate of growth of search advertising is slowing down, with company capital spending exceeding $51 billion a quarter.
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…
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