Alphabet shares fall 12% in worst day on record, erasing roughly half a trillion
Alphabet shares fell 12% in their worst day ever, erasing roughly half a trillion in market value.
Shares of Alphabet, Google's parent company, fell more than 12% on Thursday in the worst single day in company history. The drop erased roughly half a trillion in market value, the second-largest wipeout ever after Nvidia's slide in early 2025.
Investors are questioning Alphabet's massive AI spending as Google's search advertising growth slows. The company reported negative free cash flow for a second straight quarter, a first since going public in 2004.
Alphabet spent $51.4 billion on AI data centres in the third quarter alone. Microsoft, by contrast, reported strong free cash flow despite heavy AI spending.
Wall Street is weighing which big tech companies are spending wisely on AI.
- 12% decline
- Share drop
- $500 billion
- Market value erased
- $51.4 billion
- AI spending Q3
- Nvidia $600 billion early 2025
- Worst wipeout before Alphabet
Why it mattersAlphabet's collapse signals investor doubt about whether massive AI spending will pay off. This is reshaping confidence across the whole sector.
AustraliaAustralian superannuation funds and investors hold significant Alphabet shares; a sustained decline chips away at retirement savings and portfolio returns.
✓ Claims checked against the source. checked 4 h ago
