Home · Business · Oct 30 archive
Alphabet Loses Nearly $500B in Market Value Amid AI Spending Fears
· ConfirmedShare on
In Short: Google parent Alphabet's market value fell nearly $500 billion after its shares dropped 12.64% following disappointing third-quarter earnings.
Alphabet's Class A shares closed at $283.82, down 12.64%, wiping approximately $499.8 billion from the company's market capitalization, according to Fox Business.
Alphabet's capital expenditures are expected to reach between $195 billion and $205 billion this year, with spending projected to increase significantly in 2027, according to previous Fox Business reporting.
The sell-off followed Alphabet's third-quarter earnings report, which heightened investor concerns about the company's massive spending on artificial intelligence and slowing growth in its core search advertising business.
Alphabet's largest division, which includes search advertising, grew 12% year on year, reaching $63.4 billion in revenue.
The Nasdaq fell over 2% at the open as tech giants like Amazon, Google, Intel, and Alphabet suffered heavy drops, with the index falling over 5.8% so far in October.
According to S&P Global Market Intelligence, Microsoft, Alphabet, Amazon, Meta, and Oracle raised a combined $326 billion in debt in 2026, triple the amount raised last year.
Alphabet's stock fell about 8% in extended trading as investors weighed accelerating infrastructure spending against the returns it is producing.
Alphabet's earnings available to common shareholders fell to $26.17 billion, or $2.12 a share, from $34.98 billion, or $2.87 a share, a year earlier, according to Alphabet's release.
What this adds
The latest financial disclosures by four of the biggest hyperscalers, including Amazon, Alphabet, Microsoft, and Meta, revealed that the group is set to invest as much as $828 billion on capital expenditures this year, according to Fortune.
What's confirmed
- Alphabet's Class A shares closed at $283.82, down 12.64%, wiping approximately $499.8 billion from the company's market capitalization, according to Fox Business.
- Alphabet's capital expenditures are expected to reach between $195 billion and $205 billion this year, with spending projected to increase significantly in 2027, according to previous Fox Business reporting.
- The sell-off followed Alphabet's third-quarter earnings report, which heightened investor concerns about the company's massive spending on artificial intelligence and slowing growth in its core search advertising business.
- Alphabet's largest division, which includes search advertising, grew 12% year on year, reaching $63.4 billion in revenue.
- The Nasdaq fell over 2% at the open as tech giants like Amazon, Google, Intel, and Alphabet suffered heavy drops, with the index falling over 5.8% so far in October.
- According to S&P Global Market Intelligence, Microsoft, Alphabet, Amazon, Meta, and Oracle raised a combined $326 billion in debt in 2026, triple the amount raised last year.
- Alphabet's stock fell about 8% in extended trading as investors weighed accelerating infrastructure spending against the returns it is producing.
- Alphabet's earnings available to common shareholders fell to $26.17 billion, or $2.12 a share, from $34.98 billion, or $2.87 a share, a year earlier, according to Alphabet's release.
What's still developing
- Google parent Alphabet lost approximately $500 billion in market value Thursday after its shares plunged nearly 13% following disappointing quarterly earnings, marking the second-largest single-day market value loss in stock market history.
- Meta and Alphabet both raised previously issued ranges.
- Alphabet and Microsoft reported surging demand for artificial intelligence in their quarterly earnings Wednesday, and the technology giants continue pouring billions of dollars into the infrastructure needed to support the growing industry.
- The latest financial disclosures by four of the biggest hyperscalers, Amazon, Alphabet, Microsoft, and Meta, as well as Elon Musk’s up-and-coming AI player, SpaceX, which includes xAI, revealed that the small group of tech heavyweights is set to invest as much as $828 billion on capital expenditures this year.
- The index has fallen over 5.8 percent so far in October as the AI trade ran into turbulence, with hyperscalers Meta Platforms, Alphabet and Amazon.com raising spending forecasts further as they race to expand AI infrastructure.
- The device features a 7-inch display, facial recognition for up to 6 users, and Siri AI, and goes on sale November 13 Apple $AAPL introduced a $299 smart home hub called HomeView on Tuesday, entering a market dominated by Amazon $AMZN.com and Alphabet $GOOGL 's Google with a display device powered by its Siri AI assistant.
- Key players – Microsoft, Amazon, Alphabet, Meta Platforms, and Oracle (ORCL) – are expected to spend in aggregate about 90% of their operating cash flow on capex in 2026, according to Bank of America.
- Capital investment from leading big tech companies such as Amazon (AMZN), Microsoft (MSFT), and Alphabet (GOOG) (GOOGL) is set to soar 71% this year as they rush to build out their artificial-intelligence (“AI”) capabilities in advance of demand.
- Alphabet reported Q3 2026 revenue of $127.577 billion, up 25% year-over-year, driven by a 103% surge in Google Cloud revenue.
- Shares of Google’s parent company dropped by more than 12% on Thursday, losing $480 billion from its market capitalization, recording their worst day on record.