Google value plunges by $500B as AI fears rattle Wall Street

Alphabet lost just over $500bn in market value on Thursday, with its stock hitting a six-month low, after its quarterly update showed AI summaries on Search were affecting ad revenue and profits fell 25% even as total revenue grew 25% to $127.6bn. Microsoft and Amazon also reported this week, with Amazon shares falling 6% after hours on negative free cash flow of $42bn, while Microsoft's shares fell less than 1%. Analysts quoted said the results highlight the challenge of funding massive AI investments while sustaining established businesses, and where AI value will ultimately be captured.