Google Posts Largest Single-Day Drop in Its History, $500 Billion in Market Value Wiped Out

October 29 — According to Zhitong Finance, Google's parent company Alphabet posted the largest single-day decline in its history, with the drop widening to 13% and its market value down more than $500 billion from the previous trading day's close. Third-quarter revenue was $127.58 billion, up 25% year-on-year, below the market expectation of $127.91 billion; adjusted earnings per share came in at $2.67, below the expected $2.97. Google Cloud revenue rose 103% year-on-year to $30.71 billion, but its core advertising business underperformed expectations, and free cash flow recorded a net outflow of $9.07 billion. The market worries that with AI spending continuing to climb, slowing search advertising growth may further increase pressure on profitability and cash flow.