Alphabet shares plunge 15.8%, wiping $550 billion in value
· Business · NBC News, Bloomberg
Alphabet shares dropped as much as 15.8% in a single day, marking its steepest single‑day decline and erasing over $550 billion in market value. The plunge ranks as the second‑worst one‑day market loss ever, trailing only Nvidia’s $589 billion drop in 2025. Alphabet still remains the world’s fourth‑largest company by market cap at more than $3.4 triillion, but the sell‑off follows weak quarterly revenue and advertising sales that fell short of expectations. JPMorgan Chase analysts said the magnitude of the slowdown in Google’s search business was steeper than expected. The sharp decline underscores broader Wall Street anxiety about AI firms’ ability to deliver returns on massive investments.
Why it matters
The drop wipes out $550 billion of shareholder wealth, hitting major institutional investors and employee stock‑option holders. It also signals heightened risk for the tech sector, potentially affecting venture‑capital funding and AI project budgets across the industry. The loss could pressure Alphabet’s leadership to accelerate revenue‑generating initiatives amid growing uncertainty about AI’s profitability timeline.
Read the original report — NBC News
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