Alphabet Drops 6%, Amazon Falls 4% as $452 Billion AI Capex Spurs Selloff
Updated
Updated · 24/7 Wall St. · Jun 22
Alphabet Drops 6%, Amazon Falls 4% as $452 Billion AI Capex Spurs Selloff
3 articles · Updated · 24/7 Wall St. · Jun 22
Summary
Alphabet fell 6% to about $346 by midday and Amazon lost 4% to roughly $234, leading a broader hyperscaler retreat as investors recoiled from AI spending plans.
A combined 2026 capex bill above $452 billion across Alphabet, Amazon, Microsoft, Meta and Oracle sharpened fears that AI monetization is lagging the buildout and squeezing cash generation.
Alphabet faced added pressure after a reported Google DeepMind scientist departure, extending concerns after recent exits to OpenAI and Anthropic and pushing online sentiment sharply bearish.
Cash-flow strain is central to the debate: Alphabet's Q1 2026 free cash flow dropped 47% to $10.12 billion, while Amazon's trailing free cash flow fell 95% to $1.2 billion despite 28% AWS growth.
The selloff also unfolded in a broader risk-off market tied to Iran headlines, leaving investors focused on whether AI revenue ramps fast enough to justify the spending surge.