GoKawiilAlphabet shares fall sharply, wiping out about $500 billion in market value
Alphabet's stock dropped significantly on October 29, pulling the Nasdaq down with it, after third-quarter earnings showed Google Services revenue of $96.3 billion, below Wall Street's $98.5 billion estimate. Search revenue growth slowed to 12% year over year, down from 17% in Q2 and 19% in Q1, while operating expenses rose and free cash flow turned negative as the company increases spending on data centers and AI models.
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The selloff suggests investors may be growing less willing to overlook rising AI spending when core revenue growth is slowing, according to JonesTrading's Mike O'Rourke, who said the results showed Google's 'vulnerability to AI.' The stock's formation of a 'death cross' pattern is viewed by some analysts as a technical signal that further declines could follow, though this is not guaranteed. The episode could signal broader investor unease about whether heavy AI investment across Big Tech is translating into proportional returns.
- Alphabet lost roughly $500 billion in market value in a single trading day on October 29.
- Google Services revenue and search growth both came in below Wall Street expectations, with search growth slowing for three straight quarters.
- Rising AI-related spending and negative free cash flow, combined with a technical 'death cross,' have raised investor concerns about returns on AI investment.
Source: entrepreneur.com — Jonathan Small, 2026-10-29
Published there as: “Alphabet Just Lost $500 Billion in One Day — Here’s Why Wall Street Is Spooked”
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