Catenaa, Thursday, October 29, 2026- Alphabet stock fell by over 12% on Thursday and is on track to lose $500 billion in market value.
According to Yahoo Finance, if Alphabet loses $500 billion in market cap, it would be the second-biggest one-day loss ever for a US-listed company.
Only Nvidia lost about $593 billion in market cap on January 27, 2025, the day China’s DeepSeek rattled AI investors.
Alphabet’s sell-off could become the second-largest single-session market-value decline for a US-listed company, according to Yahoo Finance data. Nvidia currently holds the record, losing about $593 billion in January 2025. Alphabet’s decline also exceeded the $400 billion reduction SpaceX recorded in June.
The latest retreat could also surpass Alphabet’s previous record decline following an earnings announcement. Bespoke Investment Group identified a nearly 10% fall in July 2008 as the company’s previous worst post-results performance.
The company reported more negative free cash flow than analysts expected. The figure was $9.07 billion for the third quarter, much higher than the $2.70 billion analysts expected.
The company kept its capital expenditures guidance for the next year unchanged: between $195 billion and $205 billion.
Philipp Schindler, Alphabet’s chief business officer, said lower monetization in AI Mode has hit the company’s search business. He went on to say that Alphabet is “scaling” ads within the AI overviews and AI Mode products.
Search & other revenue grew 12% to $63.4 billion, about $1.5 billion short of estimates, as Bloomberg’s Ed Ludlow pointed out. Growth was 17% in the second quarter and 19% in the first.
“The bears will argue this is the first quarter that AI is starting to seriously hurt their search business,” Pivotal Research CEO Jeffrey Wlodarczak told Yahoo Finance in a rundown of why investors hated the quarter.
CFRA’s Angelo Zino was more patient, telling Yahoo Finance the pullback “probably represents a buying opportunity.”
Large single-day declines in US stock market valuations have become increasingly frequent. According to Yahoo Finance’s analysis of Bloomberg data, there were 18 instances of US-listed companies losing at least $200 billion in market value during a trading session in 2026 through October 28, compared with 13 in 2025.
Alphabet alone has lost about $1.4 trillion since its May record.
