Shares of Google parent company Alphabet sank Thursday by more than 12%, in its worst one-day performance ever, wiping out more than $500 billion in market value.
\n\nAlphabet is America’s fourth-largest company, worth a total of $3.42 trillion, as of midday. Still, the amount of value it shed Thursday ranks as the second-worst wipeout in market history, only behind Nvidia’s $589 billion drop in 2025.
\n\nThe sharp drop in its stock price Thursday was the latest sign of broader anxiety across Wall Street over how long it will take big artificial intelligence companies to see consistent returns on investments worth hundreds of billions of dollars.
\n\nOn Wednesday, Alphabet reported its latest quarterly financial results, revealing that revenues fell short of Wall Street’s expectations.
\n\nIt also reported lackluster advertising sales.
\n\nThe “magnitude” of the slowdown in Google’s search business was “steeper than expected,” JPMorgan Chase analysts wrote in a Thursday morning note.
\n\nA senior Alphabet executive told investors Wednesday that part of the reason ad revenues from search were underperforming was because of Google’s own “AI Mode” search feature, which was resulting in fewer ads.
\n\nThe company is working on addressing this, senior vice president Philipp Schindler said on the investor…
Original source: https://www.nbcnews.com/business