Alphabet Loses ~$500B in Market Value as AI Pressure Crimps Search Growth to 12%
JOBhakdi · x · 2026-10-29
Alphabet opened down 13% near $280 after its first revenue-and-EPS miss in nearly four years, wiping out $500B in market value: revenue $127.6B vs $127.97B expected, EPS $2.12 vs $3.01. The core issue is search — revenue grew 12% to $63.35B, missing estimates for a second straight quarter, with growth decelerating from 19% (Q1) to 17% to 12%.
Trader JOBhakdi explains why he excluded GOOGL from his "screaming buys" list: beyond ethical concerns, he argues AI agents are eroding search profitability (Google and Amazon retail being the prime agentic-disruption targets), the transition will be painful even with perfect execution, and Google's product-development reputation is poor — leaving it unattractive relative to other AI supercompanies despite strong fundamentals and a booming cloud business.
Related event: Alphabet Misses on Revenue and EPS, Wiping Out ~$500B in a Day(43 posts)→
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