Google parent Alphabet loses over $600B in market value as slowing search growth and high AI spending trigger stock drop.
The parent company of the global internet search engine Google, known as Alphabet, is on track to lose over $600 billion in total market value throughout the month of October 2026.
The massive fall in company value happened after the technology giant released its third-quarter financial results on Wednesday, causing its share price to drop sharply during trading sessions on Thursday.
According to financial tracking data provided by FiscalAI, Alphabet’s total market value dropped by 15.9 percent from $3.52 trillion recorded on September 30 to lower levels by October 29.
The sharp drop represents a huge loss of roughly $665 billion in company value within a single month. During trading on Thursday, Google stock dropped by more than 12 percent, making it one of the most talked-about and active stocks among online investors on platforms like Stocktwits.
The main reason for this sharp sell-off was that Google earned less money than expected from its famous search search engine advertisements.
In addition, the company spent a massive $51.4 billion on heavy equipment and technology infrastructure, which resulted in a negative free cash flow of $9.1 billion.
Total revenue for the third quarter rose by 25 percent compared to last year, reaching $127.6 billion, but this figure still fell short of the $127.9 billion expected by financial experts.
Furthermore, money made from Google Search grew by 12 percent year-over-year to $63.35 billion, showing a slowdown from the 17 percent growth recorded in the previous quarter.
Major financial news reporting platforms highlighted the varied reactions coming from top financial analysts on Wall Street regarding the company’s future direction.
Defending the long-term strength of the technology giant, financial experts at Deutsche Bank noted that new artificial intelligence features are bringing more users to the platform.
Addressing the core search business performance, Deutsche Bank noted:
“AI was driving Google’s strongest Search query growth in five years, including commercial queries, while advertising across new AI experiences was beginning to scale.”
Similarly, market analysts at JPMorgan expressed confidence that the recent slowdown in search engine revenue is temporary rather than permanent.
Evaluating the main cause of the revenue slowdown, JPMorgan noted:
“management identified foreign exchange as the largest driver of the third-quarter Search growth slowdown.”
Looking further into the future, research analysts at Rosenblatt expressed high optimism for Google’s cloud computing business, stating that they expect:
“Google Cloud revenue to surpass Search and YouTube combined by 2028.”
Meanwhile, financial strategists at Bank of America raised their 2027 revenue forecast for the tech giant by 11 percent to $616 billion, pointing out strong demand for Google’s custom computer chips, known as Tensor Processing Units.
However, other Wall Street firms cautioned investors about near-term financial struggles. Investment experts at KeyBanc warned that third-quarter numbers confirmed their concerns about slowing search growth and short-term profit pressures, creating a potentially rough path for the stock over the coming months.
Explaining what is needed for the stock to bounce back, market analysts at Morgan Stanley stated:
“faster Search growth and innovation would be important for a stock valuation re-rating.”
Despite the heavy drop in stock price, everyday retail investors remain hopeful. Activity on community trading platforms like Stocktwits showed that small investors continue to feel “extremely bullish” about Google’s future, believing the company will recover strongly over time.
Jennifer Baba is a journalist, international news correspondent, and writer at Moderncrux, where she covers artificial intelligence, fintech, emerging technologies, global politics, and international affairs. Based in Nigeria, she is passionate about transforming complex global developments into clear, engaging stories that inform and inspire readers.
