Alphabet Stock Falls 13% Amid AI Concerns

Alphabet, Google's parent company, suffered its biggest single-day stock decline on October 29, 2026, with shares falling more than 12% and briefly approaching a 13% drop. The selloff wiped out more than $500 billion in market value during the trading session.

The decline followed weaker-than-expected quarterly results and concerns about the company's growing artificial intelligence expenses.

Google Search generated approximately $63 billion in quarterly revenue, with growth of around 12%. However, investors are questioning whether AI-powered search experiences can maintain the advertising revenue generated by traditional search.

Alphabet also reported approximately $51.4 billion in capital expenditure, reflecting substantial investment in AI infrastructure, including data centres and computing equipment.

Meanwhile, Google Cloud continued to grow, generating approximately $30.7 billion in quarterly revenue.

The stock decline highlights a major challenge for Google: expanding its AI business while protecting its traditional advertising revenue. Investors increasingly want evidence that these investments will deliver sustainable financial returns.

Sources: CNN, Reuters, Bloomberg and Yahoo Finance.