Alphabet (Google’s parent company) shares fell about 13% on Thursday after the company reported its third-quarter results. The stock was on track for its worst single-day fall since the company went public in 2004.
The sharp fall put nearly $500 billion of Alphabet’s stock market value at risk. Nvidia recorded the biggest one-day loss in market value among US-listed companies, losing about $593 billion on January 27, 2025. The company’s market value has dropped by about $1.4 trillion since its record high in May.
The fall came after China’s DeepSeek AI model worried investors about the future of the artificial intelligence industry, Yahoo Finance reported. This would make it the second-biggest one-day loss in market value for a US-listed company. The latest fall added to Alphabet’s losses over recent months.
Google Cloud revenue doubles, Gemini users cross 1 billion
Alphabet was also on track for its steepest stock decline following an earnings report since it went public in 2004. The previous record was a fall of nearly 10% in July 2008, according to Bespoke Investment Group. Google’s Gemini AI app crossed 1 billion users, marking another major milestone for Alphabet’s artificial intelligence business.
However, the strong user numbers did not prevent the company’s shares from falling sharply after its earnings report. If Amazon Web Services reports faster revenue growth without a decline in cash flow, investors may see Alphabet’s weak performance as a problem specific to Google’s search business.
Strong cloud growth alongside healthy cash flow at Amazon would suggest that heavy AI investment is not necessarily hurting every major technology company in the same way, according to the analysis in Yahoo Finance’s report.
Analysts divided over Alphabet stock outlook
Not all analysts viewed the share price decline negatively.
Angelo Zino of CFRA told Yahoo Finance that the pullback in Alphabet shares probably represented a buying opportunity, suggesting that the stock’s fall could attract investors who believe in the company’s long-term prospects.
