Alphabet Loses $500 Billion as AI Spending Spooks Wall Street
Alphabet lost roughly $500 billion in market value as investors grow increasingly worried about Silicon Valley's massive AI spending spree. Alphabet's shares plunged over 12% Thursday after reporting disappointing third-quarter earnings, with revenue of $127.6 billion falling short of expectations. The company also reported $9.1 billion in negative free cash flow for the second consecutive quarter, while planning $195-205 billion in capital expenditures this year. Meta, Amazon, and Intel also suffered significant stock declines amid AI spending concerns. Intel shares plunged nearly 30% Friday, its worst day in over 50 years, due to weak revenue forecasts, slowing PC sales, and a $600 million loss from an Israeli facility explosion.