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📉 Google Just Lost Half A Trillion Dollars
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☕️ GM Munchers! I was having a fine week until everything decided to crash. Turns out the only thing spending money faster than Big Tech on AI is me on things to distract myself from Big Tech.
On today’s menu:
📉 Google Just Lost Half A Trillion Dollars
🤯 Amazon Just Collapsed After Earnings
🐊 Crocs, Carvana & Sprouts
🚢 Norwegian Cruise Finally Caught A Wave
📉 20 Tech Stocks In Bear Market Territory
Yesterday’s numbers:
S&P 500 | 7,743 | +0.28% |
Nasdaq | 26,549 | +0.27% |
Dow Jones | 52,475 | +0.19% |
Bitcoin | ~$81,200 | +0.50% |
BREAKING NEWS
📉 Google Just Lost Half A Trillion Dollars
Buckle up, because this one is staggering. Alphabet, the parent company of Google, got absolutely demolished yesterday, with its stock crashing about 12.6%, wiping out roughly $500 billion in market value. To put that in perspective, it was the second-largest single-day market cap loss in history for any company, trailing only Nvidia’s $593 billion wipeout on January 27, 2025. It was also Google’s worst day since the company went public back in 2004.
So what triggered such a brutal selloff? Google reported earnings the day before, and while the headline numbers looked fine, investors zeroed in on two scary details. First, the company’s free cash flow, the actual cash left over after spending, swung to a negative $9 billion, far worse than expected, as Google poured money into its AI buildout. Second, growth in its all-important search advertising business slowed down, missing Wall Street’s targets. Translation: Google is spending enormous sums on AI, and investors are nervous about whether it will pay off while its main money-maker cools.
The damage goes well beyond a single day. Google has now given back about $700 billion from its high set back in May, which is more than the entire value lost by Meta and Tesla combined. And here is the strange twist: all of this is happening while Apple keeps climbing to fresh all-time highs. Money is clearly rotating away from one tech giant and into another.
📊 The spending is enormous. Google burned through $51.4 billion in capital spending in the quarter alone, more than double the $24 billion it spent a year earlier, and it kept its full-year spending guidance of up to $205 billion.
🏦 Debt is piling up fast. To fund the AI race, Google’s long-term debt has ballooned to about $125 billion, up from just $46.5 billion at the end of 2025, a stunning jump in under a year.
👥 One bright spot got ignored. Google Cloud revenue actually more than doubled, soaring 103% to $30.7 billion, and CEO Sundar Pichai said its AI Mode has reached one billion users. Investors simply did not care.
The Munch Take: Here is where it gets genuinely interesting for us. After this brutal drop, Google is now trading at a price-to-earnings ratio of under 15, which is remarkably cheap for one of the most dominant and profitable companies on the entire planet. Think about what you are getting at that price: the world’s leading search engine, YouTube, the Android operating system, a cloud business growing like wildfire, and a top-tier AI lab, all for a valuation cheaper than the average boring stock in the market. Fear has a funny way of handing patient investors incredible businesses at discount prices, and this feels like one of those moments. We are buyers at this level, plain and simple, though of course this is not financial advice and you should always do your own homework. When a world-class company gets thrown out with the bathwater over one nervous quarter, we pay very close attention. Panic is loud, but value is quiet, and right now Google is screaming value to us.
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STORY OF THE DAY
📉 Amazon Just Collapsed After Earnings
The carnage continues. Amazon stock cratered over 12% in after-hours trading after reporting weaker-than-expected earnings, erasing a staggering $315 billion in market value in a matter of hours.
So what went wrong? On the surface, Amazon missed slightly on both revenue and profit, which was enough to light the fuse in this jittery market. But here is the fascinating part that makes the reaction so telling. Amazon’s cloud business, AWS, actually had a monster quarter, with sales growing 39% from a year ago, its fastest pace in nearly five years. The company even posted its highest operating margin in history. The core business is genuinely thriving.
So why the collapse? The same villain haunting every tech giant right now: spending. Amazon is pouring roughly $220 billion into building AI infrastructure this year, and that massive outlay has pushed its free cash flow deep into the red. Investors are terrified of this exact pattern, where huge AI bills pile up while the payoff stays uncertain.
☁️ The cloud is booming. AWS grew 39% and now drives the bulk of Amazon’s profit, proving demand for AI computing is very real.
💸 The cash is bleeding. Enormous AI data center spending flipped free cash flow sharply negative, the thing spooking investors most.
🔁 A brutal pattern. Google, Meta, and now Amazon all got punished for the same reason: colossal AI spending with payoffs that have not fully arrived.
The Munch Take: We have now watched this exact movie three times in one week, and the message from Wall Street could not be clearer: show us the payoff, or get punished. The market’s patience with endless AI spending has officially snapped. Here is our honest read, though. Amazon’s cloud business hitting its fastest growth in five years is not a company in trouble, it is a company investing hard while the opportunity is red hot. A negative cash flow number during a massive buildout is uncomfortable, but it is exactly what you would expect when a giant is racing to build the future. The fear is loud, the spending is real, and the payoff is still unproven. That combination is precisely what creates opportunity in world-class businesses for those willing to stomach the volatility. Everyone is panicking about the bill. We are more interested in what they are building with it.
MARKET OVERVIEW
🍟 Tasty Movers & Shakers
🤔 From Investors Alley: Monthly checks from Tesla? Here's how.
🚗 $CVNA Carvana surged 15.59% after selling more than 200,000 vehicles last quarter and posting record revenue.
🐊 $CROX Crocs soared 25.54% after crushing earnings and raising its full-year profit outlook, helped by HeyDude finally returning to growth.
💾 $MRVL Marvell Technology slipped 13.24% on reports it is in advanced talks to buy optical-networking company Lumentum. Investors rarely cheer when a company signals it is about to spend big on an acquisition.
🥬 $SFM Sprouts Farmers Market cratered 22.58% after weak results and a warning that same-store sales are getting worse. A grocery chain forecasting shrinking sales is exactly what sends shoppers of the stock running.
☁️ $NOW ServiceNow plunged 26.64% after soft subscription guidance stoked fears that AI could disrupt its software business. The great AI worry of the moment is whether it builds these companies up or tears them down.
STOCK OF THE DAY
🚢 Norwegian Cruise Finally Caught A Wave

Smoother sailing at last. Norwegian Cruise Line $NCLH stock jumped 13.45% yesterday after the company reported earnings that blew past expectations. It earned $1.12 per share, crushing the roughly $0.94 Wall Street wanted, and raised its profit forecast for the full year. The boost came from strong last-minute bookings and passengers spending more once they were onboard. After a rough stretch, investors were clearly relieved to see the ship steadying.
Here’s the important context, though. Even after this big jump, Norwegian stock is still down about 20% this year. So this was a nice bounce, not a full recovery. And that points to a fascinating story within the cruise industry, because Norwegian has been the clear black sheep of the group.
Look at its rivals and the gap is striking. Royal Caribbean, the industry’s star performer, is actually up around 12% this year, sailing in the opposite direction. Carnival sits roughly flat. So while cruise demand overall has been booming, with ships packed and bookings strong, Norwegian’s stock has badly lagged its peers. The same rising tide has not lifted all three boats equally.
So why has Norwegian been the odd one out?
💳 Debt is the anchor. Norwegian carries a heavier debt load than its rivals, and in a world of high interest rates, that weighs on the stock no matter how many cabins it fills.
🎟️ Cheaper tickets, not pricier ones. Part of this quarter’s growth came from shorter, lower-priced cruises filling more seats, rather than charging premium fares like Royal Caribbean does.
📉 Trust takes time. After years of underperformance, investors need more than one good quarter before they fully believe the turnaround is real.
The Munch Take: The heavy debt load is still concerning, but this quarter was a real step in the right direction. One thing worth noting: the cruise industry itself is clearly healthy, with demand booming across the board, which is a great sign for the overall economy. So the problem here is specific to Norwegian, not the industry. We are definitely buyers of their cruise tickets, but not the stock for now. There are better opportunities out there, and until that debt comes down, we would rather look elsewhere.
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