Alphabet shares record their worst day ever, shedding $500 billion in value
Investors punished the stock as Google Cloud revenue rose, but free cash flow turned negative and capital spending topped $51 billion, analysts said.
- On Thursday, October 29, 2026, Alphabet shares plunged approximately 12–13%, wiping out about $500 billion in market value—the firm's largest-ever single-day loss after missing third-quarter earnings estimates.
- Mounting investor concern over Alphabet's aggressive AI infrastructure investment drove the sell-off, as capital expenditures topped $51 billion, pushing free cash flow to negative $9.1 billion for the second consecutive quarter.
- While Google Cloud revenue surged 103% to $30.7 billion, Chief Business Officer Philipp Schindler noted search monetization faces pressure as 'AI Mode' results in fewer ads.
- The sell-off extended beyond tech, dragging major U.S. indexes lower, while construction giant Caterpillar plunged 9.2% as investors reassessed massive capital requirements for data centers.
- Despite maintaining 2026 capex guidance of $195 billion to $205 billion, Alphabet management signaled spending will increase 'significantly' next year, heightening investor anxiety about AI-driven growth sustainability.
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144 Articles
U.S. stock indices ended in a negative bid on Thursday, and investors evaluated the status and corporate reports.
A historic drop for Alphabet’s stock drags the US market lower - WXXV News 25
By STAN CHOE NEW YORK (AP) — A historic drop for Alphabet’s stock dragged the U.S. market lower Thursday after the company behind Google and YouTube reported weaker growth for the summer than analysts expected. The report underscored worries about whether all its huge investments in artificial-intelligence technology will pay off. The S&P 500 fell 0.3% for its first loss...
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…
The Nasdaq technology lost 1.38%, the expanded S&P 500 index yielded 0.30% and the Dow Jones dropped 0.25%.
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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