Alphabet loses $475B as AI spending pushes free cash flow deeper into the red

Alphabet lost about $475 billion in market value after its October 28 earnings report, despite third-quarter revenue rising 25% to $127.6 billion and operating income climbing almost 30% to $40.58 billion. Revenue missed analysts’ $128.22 billion forecast, and free cash flow—cash left after operating costs and capital investment—fell $9.07 billion into negative territory as $51.36 billion in property and equipment spending exceeded $42.29 billion in operating cash; the company also projected 2026 capital expenditures of $195 billion to $205 billion. On October 30, the selloff pushed the Nasdaq down 2.86%, the S&P 500 down 1.82% and the Dow down 1.09%, while Alphabet and Amazon each fell 1.4%.