Alphabet Shares Plunge 11%, Erasing $400 Billion in Market Value

businessinsider.com —

Alphabet shares fell 11% in premarket trading Thursday, potentially wiping out over $400 billion in market value and marking the second-largest one-day loss in US stock market history. The decline follows Wednesday's earnings report showing negative free cash flow and missed profit forecasts. The company reported about $9.1 billion in negative free cash flow due to heavy AI infrastructure spending, while search revenue of $63 billion fell below analyst estimates and was flat quarter-over-quarter. Google's AI Mode search queries grew strongly but monetization lagged, prompting plans to expand ads in AI Mode internationally. The slump reflects broader concerns about generative AI disrupting Google's core search business, with competitors like ChatGPT offering alternatives. If shares close down more than 9.77%, it would be Alphabet's worst post-earnings drop since its 2004 IPO.


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