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Alphabet shares drop 12% after revenue misses forecasts

By Drooid · Oct 30, 2026 · How we work

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Summary

Alphabet Inc. shares plunged over 12% Thursday, erasing $500 billion in market value.
Revenue of $111.2 billion missed forecasts and ad sales grew at the slowest pace in five quarters.
Vice president Philipp Schindler said AI Mode cut search-ad inventory while Gemini AI reached over 1 billion users.
Alphabet pledged more than $1 trillion for multiyear AI infrastructure and plans over $200 billion spend this year.

History

In March 2000 the Nasdaq Composite peaked at 5,048.62 before falling 78% by October 2002, erasing $5 trillion in dot-com market value. That crash wiped out more than $100 billion from firms such as Amazon and Cisco and reshaped investor caution toward speculative tech. Alphabet’s 2024 drop of over 12%, costing $500 billion, echoes those same over-hyped valuations, prompting analysts to warn of another correction.

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In March 2000 the Nasdaq Composite peaked at 5,048.62 before falling 78% by October 2002, erasing $5 trillion in dot-com market value. That crash wiped out more than $100 billion from firms such as Amazon and Cisco and reshaped investor caution toward speculative tech. Alphabet’s 2024 drop of over 12%, costing $500 billion, echoes those same over-hyped valuations, prompting analysts to warn of another correction.

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