Shares fell 12.64% after third-quarter revenue came in below expectations, though Google Cloud revenue more than doubled.
NEW YORK – Google parent Alphabet lost about $500 billion in market value on Thursday after its shares fell nearly 13% following disappointing quarterly earnings, the second-largest single-day market value loss in stock market history.
Alphabet’s Class A shares closed at $283.82, down 12.64%, wiping about $499.8 billion off its market capitalization, according to the Wall Street Journal as cited by Fox Business. The drop beat Alphabet’s previous record one-day loss of about $275 billion in July, Forbes reported. Nvidia holds the record, having shed about $589 billion in January 2025.
The sell-off followed Alphabet’s third-quarter report on Wednesday, which showed revenue of $127.6 billion, up 25% from a year earlier but below Wall Street’s expectations. Google Search revenue grew 12%, down from 17% growth in the previous quarter, adding to concerns about its core advertising business as AI-powered search changes the industry.
Investors also focused on spending. Alphabet spent about $51.4 billion on capital expenditures in the quarter, mostly on data centers and computing infrastructure for AI. It expects capital spending of $195 billion to $205 billion this year, with a significant increase projected for 2027.
There was strong growth too. Google Cloud revenue more than doubled to $30.7 billion, up 103%, beating analysts’ expectations of $29.2 billion. But Chief Financial Officer Anat Ashkenazi warned that Cloud could face near-term pressure on profit margins as the company relies on outside computing capacity to meet demand.
The results highlight a challenge for large technology companies pouring billions into AI infrastructure while investors look for proof that the spending will bring sustainable profits.
This report draws on information from Fox Business, the Wall Street Journal and Forbes.