Live: ASX set to edge up despite $US500b Alphabet share slump overnight

The Australian share market is likely to rise on opening this morning, with ASX 200 futures up 15 points overnig

Tech giant Google and its owner, Alphabet, lost more than half a billion US amid worries AI would subsume its advertising business, the largest one-day fall in the company's history.

See how the trading day unfolds on our blog.

Disclaimer: this blog is not intended as investment advice.

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Fri 30 Oct 2026 at 8:11amFri 30 Oct 2026 at 8:11am

Market Snapshot

By Alison Branley

• ASX 200: 8,891 points
• Australian dollar: FLAT at 70.33 US cents
• Dow Jones: -0.25% to 52,342 points
• S&P 500: -0.304% to 7,720 points
• Nasdaq: -1.375% to 26,184 points
• FTSE: +0.26% to 10,722 points
• Spot gold: -1.15% to $US4,020/ounce
  
• Brent crude: +0.16% to $US115.5/barrel
• Iron ore: flat at $US90.75/tonne
• Bitcoin: +0.23% to $US79,023

Prices current around 8:10am AEDT.

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Fri 30 Oct 2026 at 8:18amFri 30 Oct 2026 at 8:18am

Investors becoming more discerning about how AI growth is funded, warns analyst

By Michael Janda

There's an interesting dichotomy between Google parent company Alphabet's third quarter results and their disastrous reception — a 12.6%, roughly $US500 billion share value wipe-out — and rival Microsoft.

Microsoft's share price barely moved overnight, off just 0.2% to $US530.14.

Betashares investment strategist Hugh Lam said the divergence reflects concern that Alphabet's free cash flow remained negative for a second consecutive quarter, while Microsoft is still able to fund its AI expansion while retaining positive free cash flow.

"The market is moving from indiscriminately rewarding AI spending to scrutinising how it is financed," he writes.

"The sell-off came despite clear green shoots at Alphabet. Google Cloud revenue rose 103% year-on-year to $30.7 billion, and the division's operating margin expanded to 36.2% from 23.7% a year earlier. Usage is growing too, with the Gemini app reaching one billion users.

"The key question is whether Alphabet's 2027 capex, which management expects to increase significantly, converts into Cloud revenue fast enough to bring free cash flow back into positive territory."

Key Event

Fri 30 Oct 2026 at 8:09amFri 30 Oct 2026 at 8:09am

Alphabet sheds half a trillion US dollars in worst fall on record as AI cracks widen

By Michael Janda

Investors appear to be becoming increasingly nervous about the artificial intelligence rollout, particularly following Alphabet results that disappointed the market.

Investors were spooked by the Google parent company's increased cash burn as its investment in AI exceeded its current ability to generate profits.

The company's Google Services unit missed quarterly revenue expectations by just over $US2 billion, generating $US96.3 billion, as growth in search revenue slowed.

Reuters reports that Alphabet's negative free cash flow of $US9.1 billion shocked analysts, who had generally expected it to come close to breaking even.

Alphabet told investors it plans to further increase its investment spending from this year's forecasts of around $US200 billion.

That saw its shares record their worst fall since listing, plunging 12.6% to $US283.82, wiping close to $US500 billion off its market valuation in one day.

That was enough to drive the Nasdaq down 1.4%, compared to modest 0.3% falls for the S&P 500 and Dow Jones Industrial Average.

Fri 30 Oct 2026 at 8:05amFri 30 Oct 2026 at 8:05am

Good morning

By Alison Branley

 Hello all.

We're off to a sleepy start on this morning's blog. Did someone sleep in?

I wish!

But never fear all your finance news is coming your way.