# Alphabet Loses About $500 Billion in a Day, the Second-Biggest Single-Day Market Value Drop on Record, as Investors Balk at AI Spending

Fox Business says Google's parent fell 12.64% after third-quarter revenue of $127.6 billion missed expectations. Cloud revenue more than doubled, but capital spending plans of up to $205 billion this year worried investors.

- Section: [Economy](https://rightnewsrightnow.com/economy/)
- Published: 2026-10-29
- By: RightNewsRightNow Staff
- Canonical page: https://rightnewsrightnow.com/articles/alphabet-500-billion-market-value-wipeout-second-largest-one-day-loss-ai-spending-search-growth-fox-business/

One of the biggest companies in the world had one of the worst days any stock has ever had, Fox Business reports.

The drop. Alphabet's Class A shares closed Thursday at $283.82, down 12.64%, according to The Wall Street Journal as cited by Fox. That erased about $499.8 billion in market value. Fox says it is the second-largest single-day loss in stock market history, behind Nvidia's roughly $589 billion in January 2025 and ahead of Alphabet's own record of about $275 billion in July, as reported by Forbes.

The trigger. Alphabet reported third-quarter results Wednesday. Revenue was $127.6 billion, up 25% from a year earlier but below Wall Street's expectations. Google Search revenue grew 12%, down from 17% growth the quarter before, which fed worries about how AI tools are changing search.

The spending. The company spent about $51.4 billion on capital expenditures in the quarter, mostly on data centers and computing. It expects $195 billion to $205 billion this year, with a significant increase projected for 2027.

The bright spot. Google Cloud revenue more than doubled to $30.7 billion, up 103% and above analysts' $29.2 billion forecast. Chief Financial Officer Anat Ashkenazi warned that cloud margins could face near-term pressure because the company is renting outside computing capacity to meet demand.

The bigger picture. Fox says the sell-off shows a growing problem for big tech: investors want proof that billions in AI infrastructure will pay off.

Note for readers: the figures come from Fox Business, The Wall Street Journal and Forbes as cited by Fox. We have not checked them against Alphabet's filing.

## Source

Original reporting: [Fox Business](https://www.foxbusiness.com/markets/google-parent-alphabet-suffers-nearly-500b-wall-street-wipeout-amid-ai-spending-fears)