Alphabet loses about $500 billion in a day: revenue up 25%, stock down 12.6%

"IS IT FINALLY HAPPENING PLEASE AI BUBBLE POP." X user dess_is_alright posted this on Oct. 28, the day Alphabet reported Q3 results. It passed 35,000 likes and 320,000 views.

On Oct. 29 Alphabet shares fell 12.64%, and Financial News reports about $500 billion (roughly 670 trillion won) in market value vanished in a day. The Nasdaq Composite fell 1.37% to 26,184.72 and the Philadelphia Semiconductor Index fell 1.42%.

Alphabet reported Q3 revenue of $127.577 billion, up 25% year over year but short of the roughly $128.2 billion expected. According to Bloomingbit, free cash flow was negative $9.065 billion as capital spending jumped 114% to $51.355 billion. Cloud revenue more than doubled, but slower search ad growth drew attention.

CNBC reported Microsoft also trimmed its capex outlook to $170 billion from $175 billion at its Oct. 28 report, while Alphabet held $195-205 billion. CFO Amy Hood said outside GPU suppliers' delays pushed some capacity into the first half of 2027. Neocloud shares such as CoreWeave and Nebius fell around 5%.

There was pushback. Replies to the post said "those losses only reach ~1-3% and 260 billion dollars isn't a big loss" (89 likes) and "stocks fluctuate... a burst requires it to not go back up" (13). Per LSEG, 81% of the 253 S&P 500 companies that have reported beat expectations.