Alphabet Stock Drops 15% From Peak on AI Spending Concerns

Alphabet's stock has fallen sharply from its all-time high, erasing hundreds of billions in market value as investors question the company's position in the artificial intelligence race and its heavy spending on infrastructure. The decline follows a period of strong performance where the stock had soared more than 150% over the previous year, making it one of the top performers in the S&P 500. The selloff intensified after Alphabet's second-quarter earnings report in late July 2026. While the company posted strong results, including a 24% year-over-year revenue increase to $119.8 billion and an 82% surge in Google Cloud revenue to $24.