Alphabet Shares Fall 12%+ Wiping Record $500B Market Cap After AI Capex Turns Cash Flow Negative

The FT reports Alphabet shares tumbled more than 12% on Wednesday, erasing a record $500B of market cap after the company printed negative free cash flow amid accelerating AI infrastructure spend; the Nasdaq fell 1.4%+ in sympathy. It is the first time the Street has priced AI capex as a cash-flow problem rather than a growth story for a hyperscaler. Expect capex guides from Microsoft and Meta to be scrutinized through the same lens this earnings cycle.