Global technology stocks faced a sharp rout as Alphabet, ServiceNow and Fortinet together lost nearly USD 600 billion in market value, equal to 12% of India’s total market capitalisation. The selloff was triggered by weak earnings, cautious guidance and rising fears that artificial intelligence could disrupt existing business models.
Alphabet shares plunged 14% intraday, the steepest fall in its history, erasing over USD 500 billion in value. Weak advertising and search revenue overshadowed strong cloud growth. Analysts warned that AI systems may challenge Google’s dominance in search, adding to investor anxiety.
ServiceNow dropped 25% to record lows after its subscription revenue outlook failed to impress. Citi described the results as mixed, noting that AI acceleration may take longer than expected. Fortinet fell 27%, losing USD 34 billion, as slowing service revenue growth raised concerns about future expansion.
Retail chain Sprouts Farmers Market also slumped 24% after cutting its full‑year sales forecast. Price cuts failed to boost traffic, leading to downgrades from major brokerages.
The combined rout equalled 12% of India’s USD 5.02 trillion market cap, highlighting the global impact of US technology weakness. Investors remain cautious as slowing growth, uncertain guidance and AI disruption weigh heavily on valuations, raising questions about the stability of the sector.