Alphabet shares plummeted 12.08% to $285.65, marking the stock's largest one-day percentage decline on record since its IPO.
The sharp sell-off followed the company's third-quarter earnings miss, with revenue of $127.58 billion** falling short of the **$130 billion expectation, triggering a broad investor exodus.
The drop also coincided with mounting concerns over the company's massive capital expenditure on AI infrastructure, as investors question the timeline for these investments to generate tangible returns.
Analysts say the market reaction reflects heightened sensitivity to any slowdown among Big Tech giants, especially amid fierce competition in AI and cloud computing—putting additional pressure on Alphabet's management to demonstrate its ability to convert heavy spending into profits.