Alphabet shares plunge $500 billion in worst day ever

Alphabet shares plunged about 12.5 percent on Thursday, wiping out roughly half a trillion dollars in market value, marking the largest one-day drop in the company's history. The decline surpasses previous crashes during the COVID-19 pandemic and the 2008 financial crisis. The selloff was triggered by Alphabet's third-quarter 2026 earnings, which showed revenue up 25 percent and operating profit up 30 percent, but net income fell nearly 25 percent and operating cash flow dropped to $42.3 billion. Capital expenditures reached $51.3 billion, more than double last year, driven by heavy investment in AI data centers, resulting in negative free cash flow for a second straight quarter. Alphabet also reported losses of over $9 billion on its securities portfolio, while interest payments rose sevenfold to nearly $1 billion. The company issued $29 billion in new debt and sold new shares raising $12.4 billion, with plans for another $27.6 billion in share sales, diluting existing shareholders as AI costs continue to rise.