Alphabet stock plunges 12% on AI spending risks despite strong revenue growth

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Alphabet stock fell 12.29 percent on Thursday, its worst single-day drop ever, erasing nearly $500 billion in market value despite strong Q3 revenue growth. The sell-off followed Google's quarterly filing revealing $98.5 billion in additional possible commitments beyond its over $1 trillion in future purchase obligations, highlighting AI spending risks. Google also reported negative cash flow for the third quarter, its second consecutive quarter. The decline dragged down other tech stocks and major indices, though some remain optimistic due to 25 percent revenue growth and the top-ranked Gemini 4 Carbon model, betting long-term AI investments will pay off.


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