Alphabet shares slid 13%, erasing $500 bn of market value – the steepest one‑day decline in the company’s history. According to Alphabet’s Q3 earnings filing, free‑cash‑flow turned negative at $42.4 bn, a wild swing from a $7 bn surplus the prior quarter.
Nasdaq, the tech‑heavy index, closed 1.4% lower, while futures plunged more than 500 points before the bell. Amazon’s Q3 results missed by $1.3 bn and its free‑cash‑flow slumped to $42.4 bn, and Intel’s shares fell 23% after it issued guidance below analyst consensus.
The broader AI and software segment suffered, with ServiceNow posting a 27% drop – its worst single‑day fall – and the sell‑off pressured bond yields: the 10‑year Treasury slipped back to 4.93% from 5.05% earlier in the week.
Analysts now expect Alphabet to trim its Q4 outlook; revenue is projected to fall short of consensus estimates, and the company’s guidance for AI‑enabled services remains cautious.
Investors will watch the upcoming earnings for clearer signals on AI monetization and cash‑flow recovery. The overnight plunge in Nasdaq futures signals lingering caution as the tech sector grapples with uncertain demand and valuation headwinds.