Alphabet stock falls about 13%, wiping out roughly $500 billion in market value

Alphabet stock dropped in the wake of its third-quarter report, with investors sending Alphabet stock drop 500 billion into a sharp selloff after results missed expectations.

The company reported third-quarter revenue of $127.58 billion and net income of $26.17 billion, figures the Associated Press published via U.S. News that were below Wall Street expectations and helped push shares lower after hours. Google stocks fall about 13% after Alphabet reports weaker-than-expected Q3 results

CNBC reported that Alphabet’s shares slumped more than 10% after the earnings release and that the company recorded negative free cash flow of $9.07 billion in the quarter, a number investors flagged as a sign the company’s heavy AI spending is pressuring cash generation.

wide empty trading floor with a large digital stock-ticker display showing a declining line, scattered chairs and a single anonymous monitor still glowing

The earnings release and call also showed steep capital spending: CNBC noted Alphabet has lifted its capital-expenditure outlook and that annual capex is expected to top $200 billion and rise further in 2027, a factor cited by analysts worried about returns on the AI build-out.

Analysts and investors reacted to the top-and-bottom-line misses. U.S. News (AP) reported Alphabet earned $2.12 per share for the quarter, down from $2.87 a year earlier, and that CEO Sundar Pichai described the quarter as strong while flagging growth in AI-driven products such as the Gemini app.

anonymous silhouette of a small group of people looking up at a large, unbranded market chart screen showing a steep drop, in a dim trading-room interior

Why it mattered: several outlets linked the selloff to the company’s bigger-than-expected cash burn and weaker-than-expected search and advertising trends even as Google Cloud grew rapidly; CNBC cited a 103% year-over-year jump in cloud revenue to $30.7 billion but noted other segments missed forecasts.

Market context: the move erased hundreds of billions of dollars of Alphabet market value in a single session, a swing that commentators said made Alphabet one of the largest single-day drags on U.S. indices that day.

Sources

CNBC — reported the share decline, negative free cash flow of $9.07 billion, capex outlook and cloud revenue figure.
U.S. News / Associated Press — provided Q3 revenue of $127.58 billion, net income of $26.17 billion and EPS of $2.12, and quoted CEO Sundar Pichai.

About the author, Chris Martin

Chris Martin is a US economics and current affairs journalist covering the intersection of policy, markets, and everyday financial life. With a background in financial reporting and a sharp eye for the stories behind the numbers, Chris brings clarity to some of the most complex issues shaping the American economy today. At ECIKS.org, Chris covers breaking developments across domestic economic policy, business strategy, Wall Street movements, and political decisions that ripple through financial markets. His reporting blends rigorous data analysis with accessible storytelling making critical information useful for investors, entrepreneurs, and engaged citizens alike.