Google Parent Alphabet Shares Plunge 11%: $280 Billion Wiped Out After Disappointing Quarterly Results

Alphabet shares crash after Q3 earnings

• Alphabet Inc.'s parent company saw its shares sharply fall in the US markets after announcing its third quarter earnings. The shares lost up to 11 percent of its value on Wednesday, October 28, 2026.
• Despite increased demand for AI, investors were concerned about increasing costs and huge investment being made into artificial intelligence. The sharp slump saw the value of Alphabet's shares fall by around $280 billion (almost ₹26 lakh crore).

Why did Alphabet (Google parent) shares fall?

A large factor in the sharp drop in Alphabet shares was the lower than expected profits and earnings. While the company still saw growth in its revenue, it was not enough to please analysts.

The growing costs of developing artificial intelligence for the company, along with greater spends in data centres and computing infrastructure meant investors were concerned. People are watching to see if Google will make enough money from its huge investment in AI.

Google Cloud sees impressive growth

Despite the issues with Alphabet's shares, Google Cloud saw impressive growth during the third quarter of 2026. The cloud computing arm of the company made around $30.7 billion of revenue.

While this shows how big a role cloud computing and artificial intelligence is playing in Google's business, it wasn't enough to prevent the concerns.

Investors concerned with increased costs from AI

Google has been investing heavily in artificial intelligence to give itself an edge in the fast moving market. The company is investing more in AI, creating advanced technology and increasing their spending in the area.

However, investors are becoming increasingly concerned that they won't get the returns they expect from such heavy investment. Increasing competition in the AI sector, and changing consumer behaviours means there is uncertainty over the future of traditional search and online advertising.

What does the drop in Alphabet's stock mean?

• The sharp fall in Alphabet's stock shows how much investors are watching the company's quarterly earnings, advertising revenue and AI spend. Even major tech giants can suffer greatly in the stock market if they don't meet expectations.
• Investors will be watching Google's upcoming earnings, growth in advertising, performance from Google Cloud and returns from AI.
• This also shows how much of an impact artificial intelligence is having on global stocks, and the US market in particular.