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Google value plunges by $500bn as AI fears rattle Wall Street
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◎ Multiple-sources
Google parent Alphabet lost over $500bn (£374bn) in value on Thursday after it rattled Wall Street with its last update of the year on its business operations.
Key facts
- Alongside quarterly sales growth of 11%, hitting $201bn, the company shared a staggering cash flow figure of negative $42bn
- By the end of Thursday, the company's total stock market value had fallen to $3.46 trillion from $3.97 trillion the day
- Google parent Alphabet lost over $500bn (£374bn) in value on Thursday after it rattled Wall Street with its last update of the year on its business operations
- Total revenue grew 25% compared to last year, hitting $127.6bn
Summary
Google spooked investors so badly that its stock hit a six-month low, after it revealed its artificial intelligence (AI) summaries on search were affecting ad revenue. Microsoft and Amazon also updated investors this week, and joined Google in plans to keep spending astronomical sums of cash in an ongoing AI race. But investors appeared dismayed at the impacts these plans are having on the ability of each to keep growing their core lines of business. At first glance, the quarterly results of Alphabet, the parent company of Google, were not at all bad.