AI Cloud Stocks Tumble as Microsoft and Alphabet Cut Spending

AI cloud stocks fell sharply on October 30, 2026, after Microsoft and Alphabet signaled reduced spending, with CoreWeave down 11%, Nebius down 9%, Cloudflare down 12%, and Snowflake down 9%. The selloff follows Microsoft's lower-than-expected capital spending report on October 28 and Google's record $500 billion market value loss on October 29, driven by negative $9.1 billion quarterly free cash flow. Analysts expect hyperscalers to remain cash-negative, with losses near $200 billion over the next year, raising concerns about neoclouds' heavy debt and customer concentration. CoreWeave faces higher balance-sheet risk due to its debt-funded model, with interest expenses rising to $640 million in Q2, though it holds a $104.2 billion revenue backlog. Upcoming earnings reports from CoreWeave, Nebius, and Cloudflare could further influence sentiment.