Alphabet shares drop 13% after earnings, erasing nearly $500 billion
Business
Alphabet (yes, Google's parent company) saw its stock drop 13% on Thursday after its latest earnings report, wiping out nearly $500 billion from its value.
It's one of the biggest single-day losses for any US-listed company since NVIDIA's record fall last year.
Google Cloud revenue $31B, investors worried
Even though Google Cloud revenue more than doubled to about $31 billion and Gemini AI hit 1 billion users, Wall Street wasn't impressed.
Heavy spending on AI and infrastructure led to a negative cash flow of $9 billion, making investors question whether these big bets will actually pay off.
Some analysts think this dip could be a chance to buy in, while others worry about how AI might impact Google's main search business.