Alphabet’s shares dropped 12% on Thursday, erasing roughly $460 billion of market value, the second‑largest one‑day loss after Nvidia’s 2025 plunge.

The sell‑off pulled the Nasdaq down 1.3%, according to the Financial Times.

Alphabet reported a negative cash flow of $9.1 billion for the quarter ending September, its second negative‑cash quarter since its 2004 IPO.

Capital expenditure rose to $51.3 billion, driven by data‑centre and chip spending, and the CFO said total AI‑related spend could reach $205 billion this year.

A $5.2 billion cash payment to settle a 2018 European regulatory fine also weighed on the quarter’s results.

Search advertising revenue grew 12% to $63.4 billion, but the new “AI mode” delivers conversational answers that reduce ad clicks, prompting the chief business officer to warn of lower monetisation.

Overall revenue rose 25% to $127.6 billion, while net income fell 25% to $26.2 billion, missing analyst expectations.

Alphabet booked an $8.7 billion loss on equity investments, including a decline in its SpaceX stake, contributing to the net‑income shortfall.

Operating income rose 30% to $40.6 billion but still fell short of the $43.2 billion forecast.

Google’s cloud segment doubled sales to $30.7 billion, buoyed by demand for its own AI services and contracts with AI start‑ups such as Anthropic.

CEO Sundar Pichai said two new Gemini models, Argon and Carbon, aim to close gaps in coding, finance and cyber‑security, but investors remain cautious until AI spend translates into growth.