Stock Market Today: Nasdaq Breaks Streak On Alphabet's $500B Drop; Amazon Earnings Next
Alphabet shares plummeted after the Google parent company reported profits that missed Wall Street targets, wiping out more than $500 billion in market value during its worst day ever. The massive drop followed disappointing earnings and growing investor anxieties over soaring artificial intelligence spending and chatbots impacting Google Search revenue. Concurrently, the Nasdaq index suffered a significant sell-off driven by fresh inflation data and a broader chip rout led by Intel, culminating in the index's worst month since March 2025.
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- ✓ Alphabet shares plunged, erasing more than $500 billion in market value in the company's largest market drop in history.
- ✓ Alphabet net profit slid 25% from a year earlier to $26.2 billion, while revenue rose to $127.6 billion.
- ✓ The Nasdaq sold off following inflation data and a chip rout that led to its worst month since March 2025.
What changed
Alphabet shares plummeted over 11% to 13%, erasing more than $500 billion in market value in its largest market drop in history.
Live updates
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Nasdaq Slumps and Alphabet Loses $500B on Earnings
Alphabet shares plummeted after the Google parent company reported profits that missed Wall Street targets, wiping out more than $500 billion in market value during its worst day ever. The massive drop followed disappointing earnings and growing investor anxieties over soaring artificial intelligence spending and chatbots impacting Google Search revenue. Concurrently, the Nasdaq index suffered a significant sell-off driven by fresh inflation data and a broader chip rout led by Intel, culminating in the index's worst month since March 2025.
Why it matters
The sharp market reaction highlights mounting investor nervousness regarding the massive capital expenditure required for artificial intelligence infrastructure versus immediate financial returns. Alphabet reported that net profit slid 25% from a year earlier to $26.2 billion even as overall revenue rose to $127.6 billion. The technology sector downturn reflects broader economic jitters, with inflation pressures and semiconductor weakness weighing heavily on major stock indices.
What is confirmed
- Alphabet shares plunged, erasing more than $500 billion in market value in the company's largest market drop in history.
- Alphabet net profit slid 25% from a year earlier to $26.2 billion, while revenue rose to $127.6 billion.
- The Nasdaq sold off following inflation data and a chip rout that led to its worst month since March 2025.
Still unconfirmed
- Alphabet's historic drop is attributed in part to AI chatbots eating into Google's Search business.
What to watch next
- Amazon earnings announcements
- Further developments in artificial intelligence spending and search revenue impacts
confidence 100%Sources used for this update (10)
- Investor's Business Daily — Stock Market Today: Nasdaq Sells Off After Inflation Data; Alphabet Plummets On Earnings (Live Coverage)
- NBC News — Google-parent Alphabet’s stock price plunges, erasing more than $500 billion in value
- Yahoo Finance — Alphabet heads for a $500 billion drop in market value, the biggest in its history
- CNN — Shares of Google’s parent company just had their worst day ever. Here’s what it means | CNN Business
- Bloomberg.com — Alphabet Erases $500 Billion in Its Biggest Market Plunge
- www.theguardian.com — Google owner Alphabet loses $500bn in market value after profit disappoints Wall Street
- pro.thestreet.com — Chip Rout Sends Nasdaq to Worst Month Since March 2025
- nypost.com — Alphabet sheds record $500B in market value as AI fears hit ...
- www.foxbusiness.com — Alphabet stock plunges as Google parent loses nearly $500 ...
- www.businessinsider.com — Alphabet Stock Tanks 13%, Erasing $500B of Market Value ...
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