Alphabet Shares Fall 12% as Intel Plunges Nearly 30%
Alphabet lost roughly $500 billion in market value after Q3 revenue missed estimates, while Intel sank on a weak fourth-quarter forecast.
Alphabet shares fell more than 12% on Thursday, the company's worst single day on the stock market, wiping roughly $500 billion off its market capitalization, according to gizmodo.com. The drop followed third-quarter revenue of $127.6 billion, which came in below Wall Street expectations.
Search revenue grew 12%, also short of expectations, and the company reported $9.1 billion in negative free cash flow for the quarter. Alphabet plans to spend between $195 billion and $205 billion on capital expenditures this year, much of it on AI and related infrastructure.
The selloff extended across the tech sector. Meta shares fell 7% last Thursday after the company revealed plans to spend more on AI, and Amazon shares fell as much as 7% in premarket trading Friday following its latest earnings report.
Intel posts its worst day in more than 50 years
Intel shares plunged nearly 30% on Friday, their worst day in more than 50 years. The chipmaker forecast fourth-quarter revenue of $15 billion to $16 billion, below the roughly $17 billion analysts expected.
Intel attributed part of the weak forecast to a PC sales slowdown and an explosion at its manufacturing facility in Israel, estimated to cost about $600 million in lost revenue over two quarters. Intel was founded in 1968 and later became America's leading computer chip company; in recent years it fell behind rivals Nvidia and AMD during the AI boom, and its foundry business faced competition from TSMC.
Quick answers
How much did Alphabet shares fall?
Alphabet shares fell more than 12% on Thursday, its worst single day on the stock market, wiping roughly $500 billion off its market capitalization.
Why did Intel shares drop nearly 30%?
Intel forecast fourth-quarter revenue of $15 billion to $16 billion, below the roughly $17 billion analysts expected, citing a PC sales slowdown and an explosion at its manufacturing facility in Israel.
How much is Alphabet spending on capital expenditures this year?
Alphabet plans to spend $195 billion to $205 billion on capital expenditures this year, much of it on AI and related infrastructure.