Google Loses $500 Billion in Market Value

Alphabet has suffered a $500 billion valuation drop after revealing that its artificial intelligence tools are reducing advertising revenue. The company's conversational search mode competes directly with the ads displayed in traditional search results.

Chief Business Officer Philipp Schindler confirmed that the new AI features are affecting the current earnings model. Despite the financial impact, company leadership remains focused on massive investments to compete in the advanced technology sector.

Alphabet's total revenue grew 25% in the third quarter to reach $127.6 billion. The result fell short of analyst expectations which triggered a 12% drop in the company's stock in a single day.

Other tech giants like Microsoft and Amazon are also facing investor pressure due to high capital costs. Amazon reported a negative cash flow of $42 billion while attempting to expand its artificial intelligence operations.

The transition to AI-based search models is changing the risk perception of tech companies that rely on advertising. This shift may increase volatility in risk assets and influence demand for alternatives like Bitcoin during moments of uncertainty in the stock market.