Alphabet stock falls over 12% after Q3 print on AI spending and negative free cash flow

Alphabet's Class A and Class C shares fell sharply on Thursday, October 29, 2026, the session after the company reported third-quarter results. The selloff was driven by worries that heavy AI infrastructure outlays had pushed free cash flow below zero, alongside investor concern about a slowdown in Google search revenue growth. Forbes described the day's loss as the second-largest one-day market-capitalization decline in the company's history. Commentary also cited a reported negative free cash flow of about $9.07 billion. The move follows the earnings-miss item already on record and adds a market-reaction layer to it.

1. Alphabet shares fell more than 12% on Thursday, October 29, 2026, after third-quarter results (Forbes, Oct 30, 2026).
2. Forbes said the decline was the second-largest one-day market-cap loss in history and cited worries about massive AI spending.
3. Benzinga attributed the Thursday plunge to heavy AI investment that pushed free cash flow into negative territory.
4. Benzinga reported negative free cash flow of $9.07 billion for the quarter.
5. Commentary tied the sell-off to a slowdown in Google search revenue growth and concern that alternative AI models could erode search dominance.
6. Forbes reported that co-founders Larry Page and Sergey Brin together lost about $60 billion in paper wealth that day.