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Tech Stocks Slide as Alphabet’s Record Plunge Revives AI Fears
Alphabet’s revenue miss and faster AI-related cash burn deepened a selloff that pushed the Nasdaq lower and weighed on communication services stocks.
- 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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25 Articles
25 Articles
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.
Tech Stocks Slide as Alphabet's Record Plunge Revives AI Fears
·New York, United States
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(New York = Yonhap News) Correspondent Kim Yeon-sook = On the 29th (local time), the three major US stock indices in New York closed lower across the board.
·Seoul, Korea (the Republic of)
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ReformaReposted by 
elnorte.com
elnorte.comShares of Intel, Alphabet and Amazon recorded falls of 20.98, 12.29 and 7% due to concerns about whether investments in AI will yield returns.
·Monterrey, Mexico
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Total News Sources25
Leaning Left2Leaning Right10Center3Last UpdatedBias Distribution67% Right
Bias Distribution
- 67% of the sources lean Right
67% Right
13%
C 20%
R 67%
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