Alphabet's $500 Billion Wipeout: Worst Day in Company History

Alphabet, Google's parent company, lost nearly 13% of its stock value on Wednesday — the worst single-day drop in its history. The plunge erased about $500 billion in market value. The sell-off came after Alphabet reported negative free cash flow that was larger than analysts had expected. Free cash flow is the money a company has left after paying for its operations and investments. A negative figure means the company spent more than it earned. Alphabet also kept its spending guidance for the year unchanged, signaling that costs will stay high.