[AI Eats Up Google?] $500 Billion Evaporated in Two Days: AI Is Turning Against Its Creator A counterintuitive fact: Financial reports weren't bad, yet the stock price collapsed. What Happened 1️⃣ On Thursday, October 29th, Alphabet, Google's parent company, experienced a single-day plunge of approximately 12.6%, closing at around $283.8, wiping out about $480-500 billion in market capitalization – its worst day since its IPO in 2004. 2️⃣ Reportedly, this was the second-largest single-day market capitalization loss in history, second only to Nvidia's loss in 2025. 3️⃣ The following day (October 30th), Reddit plummeted by approximately 29%, marking its worst performance since its IPO, with its stock price falling to around $91, wiping out over $7 billion in market capitalization in a single day. 4️⃣ Ironically, Reddit's quarterly revenue was approximately $895 million, a 53% year-over-year increase, exceeding expectations. Key Takeaways ① The market is punishing "AI spending": Alphabet's problem isn't its inability to make money, but rather its AI... Capital expenditures are escalating, and investors are starting to question when returns will materialize. ② AI is eating up clicks: Multiple reports indicate that Reddit management admitted in a conference call that Google's AI search answers are directly answering questions, causing users to stop clicking on the site, resulting in a loss of traffic from Google. ③ This is a chain reaction: Google uses AI to retain users, but it's causing websites reliant on Google traffic to bleed; Google's own advertising business also faces the risk of being diluted by AI answers. ④ Overlapping background: US stocks have fallen for three consecutive weeks, with tech stocks leading the decline. Concerns about AI spending and sticky inflation are weighing on valuations. What does this mean? • The era of "AI concept = mindless price increases" may be over. The market is starting to repric based on "who is truly making money from AI." • The business models of content platforms, media, and shopping websites that rely on search traffic are being rewritten. • It also impacts the cryptocurrency market: When US tech stocks deleverage, risk assets often come under pressure, and BTC and AI-narrative tokens are unlikely to remain unaffected. Conclusion AI This isn't just a positive development; it's also a machine for "redistributing traffic and profits." This time, those taking a slice of the pie may very well be the giants who were among the first to bet on it. Do you think this is the beginning of the bursting AI bubble, or a golden opportunity? Let's discuss in the comments section Source: https://((x.com))/MarioNawfal/status/2116549322779340871 https://((x.com))/_Investinq/status/2116222860012482823 AI, Google, Reddit, US Stocks, Crypto