Alphabet loses $860B in value as AI spending outpaces Apple
Alphabet has lost approximately $860 billion in market value since its peak, a sum nearly equal to Walmart's entire valuation of $937.1 billion. In contrast, Apple remains near all-time highs, valued at $4.95 trillion, while Alphabet sits at $4.21 trillion. This divergence stems largely from capital expenditure strategies; Alphabet spent $44.92 billion on data centers and equipment in the June…
Key points
- Alphabet lost $860 billion in market value, while Apple remains near all-time highs.
- Alphabet spent $44.92 billion on capex in Q2 2026, compared to Apple's $2.455 billion.
- Apple leads the Magnificent Seven year-to-date with 25.26% gains, outpacing Alphabet's 6.47%.
Despite Alphabet's aggressive investment, its stock has underperformed Apple year-to-date in 2026, rising 6.47% versus Apple's 25.26%. Investors appear to be treating Apple as a safe haven amid concerns over the return on AI investments. Alphabet's financial position shows strain, with negative free cash flow of -$5.86 billion and long-term debt nearly doubling to $98.2 billion. Conversely, Apple returned $33 billion to shareholders last quarter and maintains a fresh $100 billion buyback authorization.
While Alphabet offers cheaper valuation multiples and faster revenue growth, particularly in Google Cloud which rose 82%, Apple provides greater stability for conservative investors. The article suggests Apple is better suited for retirement portfolios due to its intact dividend and buyback programs, whereas Alphabet requires a longer time horizon to potentially recover from its current drawdown.
Alphabet Has Lost About $860 Billion Since Its Peak, Nearly a Whole Walmart. Apple Has Avoided the AI Race and Is Near All-Time Highs.
247wallst.com · 20 October 2026
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