Alphabet loses $692 billion in market value since May 13
Alphabet (Google's parent company) has lost a massive $692 billion in market value since May 13, mostly because of delays with its Gemini 3.5 Pro AI launch and big spending on new tech.
The company's stock is now one of the biggest drags on the S&P 500, and investors are getting nervous about all the money being poured into AI without quick results.
Alphabet posts negative free cash flow
Recent earnings show Alphabet is spending a lot more than it's making, leading to negative free cash flow, a red flag for many.
On top of that, high-profile leaders like Jeff Dean and Demis Hassabis, who stepped down as chief executive officer of the Google DeepMind AI research lab, accepting a new role as chairman, have left, which shook investor confidence even more (stock dropped 4% in a single day).
Meanwhile, Alphabet is already seen as lagging Anthropic and OpenAI in coding capabilities as Alphabet struggles to deliver on its big AI promises.