The $767 billion wipe-out: Big tech drags Nasdaq lower after Alphabet, Tesla results

The Magnificent Seven group of companies, led by Tesla, Alphabet and Amazon, wiped out $767 billion in combined market capitalization, on Thursday, July 23, marking the biggest single-day drop since US President Donald Trump's tariff tantrums in April last year.

Disappointing results from both Alphabet and Tesla contributed to the fall. Alphabet shares fell 7% on Thursday after raising its capex guidance yet again for the full year to over $200 billion. Tesla shares also fell nearly 15% after its profits were well below expectations and the company also sees operating expenses rising in the future.

Thursday's session was the biggest single-day fall since March 2025 for Tesla. The sell-off resulted in Google-parent Alphabet wiping out nearly $300 billion in market capitalization, while Tesla lost nearly $200 billion.

Alphabet and Tesla both reported negative free cash flow in the most recently concluded quarter. Alphabet had even raised funds during the quarter gone by.

The sell-off in these two tech giants, particularly Alphabet, weighed on peer Amazon as well. The stock's 4.6% drop on Thursday wiped out $120 billion in market capitalization as well.

Every other big tech stock barring Apple ended with losses on Friday. Apple has emerged as an unlikely winner in this AI-led sell-off. The manufacturer of iPhones has gained 11% so far this month and is up 18% so far this year. Apple and Nvidia were the two that fell the least on Thursday.

An index that tracks these companies in the US is now down 11% from the record high levels that it had surged to in late-May, and has lost over $2 trillion in market capitalization.