AIFinancial Times1h ago

Alphabet's stock falls 12%+, wiping a record $500B from its market cap

Alphabet's stock falls 12%+, wiping a record $500B from its market cap, after reporting negative cash flow amid its AI spending; the Nasdaq falls 1.4%+

TL;DRGoogle's stock crashed 12% after missing earnings due to heavy AI spending and declining search profits.

Why it matters: Signals investor doubt about AI ROI and threatens the ad-dependent business model funding tech's AI race.

Google owner admits ‘AI mode’ has hurt traditional search as sales and profits undershoot expectations

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Source: Financial Times · Opens in new tab