Billions in AI spending drive down big tech stocks on Wall Street
Alphabet had its biggest one-day drop since going public, and Alphabet, Amazon, Meta and Microsoft lost nearly US$ 900 billion in market value.
Translated from the Portuguese original by the Panorama newsroom. Read in Portuguese
Summary written by the Panorama newsroom from the sources listed below. Facts are attributed to the original publications.
Heavy investments in artificial intelligence have begun to scare the market. According to g1, shares of Alphabet, owner of Google, plunged 12.64% on Thursday (29) after the release of its quarterly earnings, the company's biggest one-day drop since it went public in 2004.
According to the consultancy Elos Ayta, Alphabet lost US$ 493.9 billion (R$ 2.7 trillion) in market value in a single session. After the close, Amazon also fell about 7%, wiping nearly US$ 200 billion from its value. Combined, Alphabet, Amazon, Meta and Microsoft lost close to US$ 900 billion after their third-quarter results.
The pressure continued on Friday (30). The Nasdaq closed down 2.9%, at its lowest level in nearly three months, the S&P 500 fell 1.8% and the Dow Jones, 1.1%. Intel was one of the day's worst performers, down 28.6%, and Nvidia and other chipmakers were also hit.
g1 explains that the four giants have raised their investments to US$ 207 billion and have been turning to debt issuance to finance the expansion. The market wants to know when all that money will turn into profit.
The losses temporarily reduced the net worth of billionaires in the sector, such as Larry Page, Sergey Brin and Jeff Bezos.