Alphabet Lost $500 Billion in Market Value. Should You Really Buy AI Stocks Now?

Alphabet's stock fell 13% in its worst trading day ever after disappointing earnings, primarily due to concerns about massive capital expenditures ($195-205 billion annually) required for AI infrastructure build-out. While the company's cloud business grew 103% and Google ads remain strong, negative free cash flow (-$9 billion vs. expected $2.7 billion) has reignited investor concerns about whether AI spending justifies returns. The article suggests cautious investors may wait, but long-term investors should view the decline as a buying opportunity.