Google value plunges by $500bn as AI fears rattle Wall Street
Google parent Alphabet lost just over $500bn (£374bn) in value on Thursday after it rattled Wall Street with its last update of the year on its business operations. Google spooked investors so badly that its stock hit a six-month low, after it revealed its artificial intelligence (AI) summaries on search were affecting ad revenue. Microsoft [...] The post Google value plunges by $500bn as AI…
Alphabet's Google experienced a significant drop in stock value of over $500 billion after reporting its fourth-quarter results, with investors concerned about the impact of AI on the company's core businesses. Google's stock reached a six-month low following the revelation that its AI-driven search summaries were negatively affecting ad revenue.
Despite the overall revenue growth of 25%, profits fell by 25%, and the company reported negative free cash flow of over $9 billion. The company's stock market value decreased to $3.46 trillion, down from $3.97 trillion the previous day. Google's AI investments are now consuming a significant portion of its cash flow, raising concerns about funding these investments while maintaining the strength of its established business.
Microsoft and Amazon also reported their quarterly results, with both companies investing heavily in AI but facing challenges in maintaining growth in their core businesses.
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