A historic drop for Alphabet's stock drags the market lower

Amazon's Q3 capital expenditure hit $77.3B, exceeding expectations by $20B, and reported a $7.6B cash burn. Tesla's capex surged 88% to $4.7B, but it lowered its annual forecast. Microsoft also reduced its spending target. Amazon and Alphabet maintained their full-year forecasts. Investors worry about Big Tech's AI spending and its returns.

Alphabet's shares fell 12% on Thursday, reducing its market value by $460 billion. The drop was driven by AI-related spending, a $5.2 billion regulatory fine, and lower ad monetization. Quarterly revenue rose 25% to $127.6 billion, but net income fell 25% to $26.2 billion, missing expectations. The Nasdaq index also declined 1.3%.

Alphabet reported Q3 2026 revenue of $127.6B, missing expectations, with cloud revenue surging 103% to $30.71B. However, net income fell 25% to $26.17B, and free cash flow deficit widened to $9.07B due to AI investments. Shares dropped 10% in after-hours trading.

The KOSPI index in South Korea opened 2.99% lower at 5,760.35 on Friday, October 30, 2026, due to a tech sell-off in the U.S. Alphabet's 12% drop after missing revenue expectations contributed to the decline, affecting chip stocks like Samsung Electronics and SK Hynix.

Alphabet shares fell 12% on Thursday, losing $500B in market value, the worst single-day drop in its history. The decline followed below-expected quarterly sales and concerns about AI spending and search advertising growth. The company reported $51.4B in Q3 capital expenditure and two straight quarters of negative free cash flow, raising investor worries about returns and shareholder payouts.

Alphabet's 12.64% drop due to missed revenue estimates dragged Nasdaq and Nikkei lower. A $6.3B Binance hack pressured Bitcoin toward $77,000. Treasury yields fell, but broader market panic was not evident. Key levels: Nasdaq 25,802.96, Nikkei 61,462.61, Bitcoin $75,000–$76,000.