Why Alphabet Stock Crashed Today

Alphabet stock fell 6.6% despite crushing Q2 earnings expectations with $9.11 EPS (vs. $2.88 expected) and $119.8B revenue (vs. $116.5B expected). The decline was driven by investor concerns over massive AI capital investments of $195-205B this year, which have turned the company's free cash flow negative at -$5.8B in Q2, despite strong GAAP profit growth.