Google sees its worst day in 20 years, but why it may not be alone

Google-parent Alphabet witnessed its worst stock market performance in more than 20 years on Thursday, October 29. The company’s shares plunged 12.6% following its latest earnings report. The decline wiped out around $500 billion in Alphabet’s market value. Announcing the Q3 results, Alphabet said that it burned through more cash during the quarter, according to a measure called free cash flow, after its purchases of property and equipment topped $51 billion. However, the company may not be alone in facing investor concerns, as the massive cost of building AI infrastructure is putting pressure on the cash flow of major technology companies. Other tech giants, including Microsoft, Amazon, Meta and Oracle, are also committing billions of dollars to AI development, data centres and computing infrastructure.

Why did Google’s stock suffer its worst fall in 20 years