Alphabet Loses $500 Billion in Market Value as AI Threatens Google Search

Alphabet's stock price fell 13% on Thursday, marking the company's worst day ever and resulting in a $500 billion loss in market value. According to the Wall Street Journal, the decline followed the release of quarterly results that fueled investor concerns regarding the rise of AI. Business Standard IN reported that weaker-than-expected advertising and search sales also contributed to the loss, as investors worried about the impact of AI on Google's core business.

While Google Cloud revenue doubled year-over-year to $30.7 billion and the Gemini AI app surpassed one billion users, the company's capital spending more than doubled to $51.4 billion. Ventureburn reported that this aggressive infrastructure build-out led to negative free cash flow for the second consecutive quarter, totaling approximately $9.1 billion. Consequently, Alphabet halted stock buybacks and raised cash through new shares and debt.

Brief written by urgent.news from PYMNTS, Ventureburn, Business Standard IN — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.