Alphabet Shares Face Worst Day Ever as $524 Billion in…
By Abdelaziz Fathi
AI summary of the source article
Alphabet shares fell roughly 13%, losing about $524 billion in market value following third-quarter results that showed slowing search advertising growth and free cash flow dropping to negative $9.1 billion due to heavy capital spending.
Why it matters
Alphabet’s decline reflects a growing distinction between AI companies generating demand and those converting that demand into cash returns, and complicates the argument that established technology platforms can absorb AI investment without disrupting their existing profit engines.
Key facts
- Alphabet's stock plunged approximately 13%, marking an intraday market-value loss of about $524 billion.
- Google Search and other advertising revenue rose 12% to approximately $63.35 billion, missing analyst expectations of roughly $65 billion.
- Capital expenditure surged to about $51.4 billion, causing free cash flow to drop to negative $9.1 billion from positive $24.5 billion a year earlier.
Source excerpt · FinanceFeeds
Alphabet shares plunged approximately 13% on Thursday, October 29, after the Google parent’s third-quarter results disappointed investors on search advertising and cash generation, putting the stock on course for its worst session since going public in 2004. At its intraday low, Alphabet had lost approximately $524 billion in market value, the second-largest single-day loss for a US-listed company…