GoKawiilAlphabet shares drop 13% after $9bn negative cash flow tied to AI spending
Alphabet reported 25% revenue growth to $127.6bn and a 103% jump in Google Cloud revenue, but quarterly profit fell 25% and free cash flow turned negative by more than $9bn, roughly double the prior quarter's shortfall. The company's market value dropped from $3.97tn to $3.46tn as its stock fell nearly 13% on Thursday, one of its worst single-day showings this year.
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The negative cash flow suggests Alphabet is now spending more than it earns, with that spending concentrated on AI infrastructure, which could pressure future earnings if returns lag. Analyst Tracy Woo of Forrester said the weak search results show the difficulty of funding heavy AI investment while protecting core businesses like search advertising, which AI summaries may be cannibalizing. Executive reassurances about the company's AI trajectory did not prevent investors from reacting negatively.
- Alphabet's revenue rose 25% to $127.6bn but profit fell 25% year-over-year.
- Free cash flow was negative by over $9bn, nearly double the previous quarter's deficit.
- Market value fell by roughly $500bn as shares dropped almost 13% in a single day.
Source: bbc.co.uk — Watch Our Pick Of Standout Clips Across The Bbc, 2026-10-29
Published there as: “Google value plunges by $500bn as AI fears rattle Wall Street”
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