Technology shares slid over two days, with Nasdaq 100 companies losing more than $1 trillion in value on Friday alone. The selling began with Alphabet, which fell 12.6% Thursday after quarterly search revenue missed expectations and cash burn ran ahead of projections. Its free cash flow was negative $9.1 billion, versus an expected negative $2.23 billion, per FactSet. ServiceNow dropped 27% that day. The Financial Times estimated Big Tech lost nearly $900 billion after a steep rise in third-quarter AI spending. Hyperscalers have raised $326 billion this year through stock and bonds, according to S&P Global Market Intelligence. Apollo chief economist Torsten Slok framed the episode around competitive moats, while token prices have fallen roughly 35% since June.
Why it matters: The selloff tests whether competitive advantages that investors have long valued in large companies hold up as AI reshapes search and software.
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