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Alphabet stock plunges as Google parent loses nearly $500 billion
Fox Business • • general
Key Points:
- Alphabet's shares dropped nearly 13% on Thursday, resulting in a loss of approximately $500 billion in market value, marking the second-largest single-day market value loss in stock market history.
- The decline followed Alphabet's third-quarter earnings report showing $127.6 billion in revenue, a 25% increase year-over-year but below Wall Street expectations, raising concerns about slowing growth in core search advertising and heavy AI spending.
- Google Search revenue growth slowed to 12% from 17% in the previous quarter, while Alphabet's capital expenditures reached $51.4 billion in the quarter, largely invested in AI-related infrastructure.
- Google Cloud revenue more than doubled to $30.7 billion, driven by strong AI demand, though CFO Anat Ashkenazi cautioned about near-term pressure on profit margins due to reliance on external computing capacity.
- The market reaction highlights investor concerns over the balance between massive AI investments and sustainable profitability, with Alphabet's loss surpassing its previous record and Nvidia holding the largest single-day market value loss on record.
