Google Parent Suffers Record $500 Billion Market Value Loss
What Happened
Alphabet shares plunged 12.6% on October 29, wiping about $500 billion from the Google parent’s market value. The sell-off followed quarterly results that fell short of expectations and showed accelerated AI-related spending pushing free cash flow into negative territory.
Key Takeaways
The record fall shows investors are becoming more demanding about returns from Big Tech’s massive AI investments, particularly when heavy spending pressures cash flow and core businesses show signs of slowing.