Alphabet Shares Fall Record 12.6% on AI Spending Doubts
Alphabet, the parent company of Google, saw its shares fall a record 12.6% on Thursday, wiping out about $482 billion in market value. The drop came after quarterly earnings made investors worry that the company's large spending on AI may not pay off. Shares fell a little further in early trading on Friday.
Context
Context: Alphabet owns Google, along with YouTube and Android. Big tech firms are spending heavily on AI chips and data centres, and investors keep asking when those bets will earn money. Sharp swings like this often reflect that wider debate, not one quarter alone.
Burning Potato score: 70%