Today's Edition
NEW YORK (AP)
A historic drop for Alphabet’s stock dragged the US market lower on Thursday after the company behind Google and YouTube reported weaker growth for the summer than analysts expected.
The report underscored worries about whether all its huge investments in artificial-intelligence technology will pay off.
The S&P 500 fell 0.3% for its first loss in four days, even though the wide majority of stocks rose within the index and across Wall Street. The Nasdaq composite tumbled 1.4%, while the Dow Jones Industrial Average dropped 132 points, or 0.3%.
Alphabet is one of the most influential stocks on Wall Street because it’s one of the largest, and the Class A shares of its stock fell 12.6% for their worst day since they began trading more than 20 years ago.
The tech giant had been under pressure to at least meet analysts’ expectations for growth amid concerns about how much it’s spending to invest in AI.
Alphabet said late on Wednesday that it burned through more cash during the latest quarter, according to a measure called free cash flow, after its purchases of property and equipment topped $51 billion.
