On the 23rd local time, the stock prices of the seven major US tech giants collectively dived. The total market value of seven companies, including Tesla and Alphabet, shrunk by nearly 800 billion US dollars in one day. The Mag7 Index, which tracks the performance of the Big Seven, hit April 2025, the biggest one-day decline in 15 months. What is the reason for the sharp decline? Foreign media generally believe that the trigger for this collective stock price dive came from Google's parent company Alphabet and Tesla's second-quarter earnings report released after the US stock market on the 22nd. Industry analysts pointed out that the core reason was one — the two giants frantically spent money to seize the AI circuit, and the free cash flow in their hands changed from positive to negative. In order to seize the opportunity in the AI field, the two companies spent money far exceeding market expectations. Alphabet's capital expenditure in the second quarter exceeded 44.9 billion US dollars, mainly for AI computing power infrastructure and data center expansion. For the first time in 21 years since the company went public, quarterly free cash flow was negative, with a gap of about US$5.9 billion. Even so, the company raised its capital expenditure guidance for the whole year to between US$195 billion and US$205 billion.

On the 23rd local time, the stock prices of the seven major US tech giants collectively dived. The total market value of seven companies, including Tesla and Alphabet, shrunk by nearly 800 billion US dollars in one day. The Mag7 Index, which tracks the performance of the Big Seven, hit April 2025, the biggest one-day decline in 15 months. What is the reason for the sharp decline? Foreign media generally believe that the trigger for this collective stock price dive came from Google's parent company Alphabet and Tesla's second-quarter earnings report released after the US stock market on the 22nd. Industry analysts pointed out that the core reason was one — the two giants frantically spent money to seize the AI circuit, and the free cash flow in their hands changed from positive to negative. In order to seize the opportunity in the AI field, the two companies spent money far exceeding market expectations. Alphabet's capital expenditure in the second quarter exceeded 44.9 billion US dollars, mainly for AI computing power infrastructure and data center expansion. For the first time in 21 years since the company went public, quarterly free cash flow was negative, with a gap of about US$5.9 billion. Even so, the company raised its capital expenditure guidance for the whole year to between US$195 billion and US$205 billion.