Sergey Brin, Google co-founder and one of world’s richest individuals, reportedly witnessed $29 billon wiped from his fortune in a single day after shares of parent company Alphabet suffered their steepest decline since the tech giant went public in 2004. According to a report by Billionaires Africa, Alphabet’s stock plunged more than 12%, falling to about $283.29 from $321.89, after investors reacted negatively to slowing growth in the company’s core search business and mounting spending on artificial intelligence initiatives.
More than $500 billion erased from Alphabet’s market value
The sharp stock-market selloff wiped out more than $500 billion from Alphabet’s market value in less than 24 hours, the report said. Alongside Brin’s losses, fellow Google co-founder Larry Page reportedly lost around $31 billion on paper, pushing their combined wealth decline to nearly $60 billion. The losses remain unrealised, meaning they exist only on paper unless the founders sell their shares. However, the massive decline highlights how closely their fortunes remain tied to Alphabet’s stock performance.
Search growth falls short
Investor concerns centred largely on Google’s search business, which remains Alphabet’s biggest revenue generator. While search revenue increased 12% to roughly $63.4 billion during the quarter, the growth rate fell short of investor expectations of about 15%.The result intensified concerns that generative AI services could eventually challenge traditional online search, long considered Google’s most important business segment.
Cloud strength not enough
Google Cloud was a bright spot, with revenue more than doubling to about $30.7 billion. But that did little to ease worries about search and cash flow. Alphabet reported quarterly revenue of $127.6 billion on Wednesday, slightly below forecasts. Earnings per share were dragged down by an $8.7 billion loss on equity securities, and net income came to about $26.2 billion. Regulation added to the pressure. New European restrictions on how Microsoft, Amazon and Google handle certain sensitive data have weighed on sentiment.
AI spending under scrutiny
Alphabet’s aggressive investment in artificial intelligence also weighed on sentiment. The company reported capital expenditure of approximately $51.4 billion during the quarter, representing around 40% of revenue, as it continues to invest heavily in data centres and AI infrastructure. The company has also indicated that spending is expected to increase significantly next year, raising concerns among investors about profitability and cash flow despite growing demand for AI services.
A bad week for Sergey Brin to take a hit
The drop is a sharp reversal for Brin, whose fortune is tied largely to his Alphabet stake. Enthusiasm for AI had lifted the shares for much of the year, helping push both founders into the top tier of the world’s richest people. The timing is awkward. California voters are about to decide on Proposition 40, a proposed one-time tax on billionaires’ wealth, calculated on net worth including unrealized stock gains. Brin is leading a $317 million campaign against the measure. The losses are unrealized, meaning they exist only on paper unless shares are sold. A rebound in Alphabet’s stock would restore much of the lost wealth, but Thursday’s rout shows how quickly AI-driven fortunes can swing.
