The Newshound

Alphabet loses $500bn in its worst-ever Wall Street day amid fears its OWN AI is eating into Google's search profits

A Google DeepMind promotional screen introducing Gemini, the AI brand whose new Gemini 4 Carbon model Sundar Pichai unveiled just before Alphabet's earnings call as its shares tumbled over 10%.
A Google DeepMind promotional screen introducing Gemini, the AI brand whose new Gemini 4 Carbon model Sundar Pichai unveiled just before Alphabet's earnings call as its shares tumbled over 10%.
A data graphic showing Alphabet's share price movement, as an $8.7bn loss on equity investments tied to its SpaceX stake compounded the earnings miss.
A data graphic showing Alphabet's share price movement, as an $8.7bn loss on equity investments tied to its SpaceX stake compounded the earnings miss.

Alphabet's share price plunged more than 12% on Thursday, erasing $500bn in market value in the worst single session across the company's 22-year existence — behind only Nvidia's $593bn collapse in January 2025. The sell-off followed a double miss on earnings and revenue: net profit fell 25% to $26.2bn, and free cash flow turned negative to the tune of $9.1bn, only the second time that has happened.

Google's AI-generated search summaries are now eating into the advertising slots that underpin the whole business, with advertising revenue of $82bn coming in below the $83.4bn analysts had forecast.

Alphabet's cloud division offered the sole bright spot, with revenue more than doubling to $30.7bn — yet investors are pressing for AI-driven gains in search, not just in cloud.

British pension and ISA savers are also feeling the pain, as the Nasdaq dropped nearly 2% and the broader sell-off pulled down funds with exposure to US technology stocks.

MoreLBCGoogle owner suffers worst-ever day on US stock exchange as investors punish Big Tech for burning through cash for AI developmentThe IndependentGoogle stock price crashes and wipes $500 billion off company amid panic over AIDaily MailMore than £400bn wiped off Google owner Alphabet amid AI crash fearsThe GuardianGoogle owner Alphabet loses $500bn in market value after profit disappoints Wall StreetThe IndependentGoogle shares in freefall after profit collapse and shock 8 billion dollar investment wipeoutNY PostAlphabet sheds record $500B in market value as AI fears hit fever pitchReutersGoogle's Nvidia chip challenge boosts cloud sales, crimps cash flowIrish IndependentGoogle suffers record $500bn share price wipe-out over AI fearsWashington TimesAlphabet stock plummets as AI spending turns cash flow negativeBBC News - TechWall Street's AI fears slash Google value by $500bnThe IndependentGoogle suffers biggest market crash in its history – here's what we knowAPWorld shares and U.S. futures are mixed after Google parent Alphabet’s earnings disappoint
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