Alphabet Shares Plunge 13% Following Q3 Results Amid Surging AI Capital Expenditures
Alphabet (GOOGL) experienced its largest single-day market capitalization loss in history, shedding approximately $500 billion after reporting third-quarter results. While the company saw record revenue of $127.6 billion—driven by a massive 103% year-over-year surge in Google Cloud revenue—investors reacted negatively to the impact of heavy artificial intelligence spending on the bottom line. Despite strong operating income, Alphabet's net income fell 25% compared to the prior-year quarter, dropping to $26.2 billion. This decline was largely attributed to a significant spike in capital expenditures, which reached a record $51.4 billion as the company invests heavily in AI infrastructure. The resulting negative free cash flow of $9.1 billion and slowing growth in core Google Search revenue have fueled market concerns regarding the immediate profitability of AI investments.
Topics: AI Infrastructure Demand Alphabet Q3 Earnings Google Cloud Growth Stock Market Volatility
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