Alphabet Plunges $500 Billion on AI Fears

Alphabet shares fell 12.6% Thursday, their worst day on record, and roughly $500 billion in value went with them. The company says part of its weak ad sales traces to its own AI Mode search feature, which led to fewer ads. That's a bird dog that learned to eat the quail before the hunt starts. Profits fell 25% in the third quarter even as revenue rose 25% to $127.6 billion, and free cash flow went negative by more than $9 billion. Still, a $3.47 trillion market cap means they lost a few calves, not the whole herd. Semafor quoted an unnamed Wall Street executive: "I won't say they were dumb until four weeks ago." Around here, that's how long it takes to notice the gate's been open.

“I won't say they were dumb until four weeks ago”unnamed Wall Street executive, via Semafor