Alphabet's US$500B AI Wipeout Hits ASX Tech Stocks

Alphabet’s US$500 billion AI-linked wipe-out weighed on Australian technology shares on Friday, October 30, 2026, even as the broader market finished modestly higher. Xero fell 2.39 per cent, NextDC dropped 4.86 per cent and Megaport lost 1.45 per cent as the US technology giant’s losses rippled into the local market.

The ASX 200 added 16.30 points, or 0.18 per cent, to 8908.10, while the All Ordinaries rose 12.80 points, or 0.14 per cent, to 9025.40. The market reached 8992 points during morning trading, then gave up much of its gains. The Australian dollar rose to 70.35 US cents.

The Big Players Set the Terms

Alphabet, the parent company of Google and YouTube, suffered a US$500 billion ($A711 billion) wipe-out amid AI-related fears. The losses travelled beyond Alphabet: Australian technology shares fell during a session when the overall market still managed a small gain. Those figures lay bare the unequal reach of corporate market shocks, though the report identified no grassroots response or community support effort.

Chris Weston, Pepperstone head of research, described AI stocks as facing “another brutal sell-off.” He said: “The market has once again demonstrated that it has absolutely no tolerance for companies operating within the AI thematic that fail to bring their A-game to the party.” Weston added: “And when expectations are this elevated, disappointment is being punished with little mercy.”

Eight of the ASX’s 11 sectors ended higher. Consumer discretionary stocks recovered some of Thursday’s losses, while energy and healthcare shares also gained. Wesfarmers rose 3.61 per cent to $76.69, JB Hi-Fi gained 6.21 per cent to $72.88 and Super Retail Group added 0.71 per cent to $12.73.

Sales Figures, Market Punishment

Coles fell 7.67 per cent to $21.66 after reporting sales growth of 2.7 per cent, below market expectations of 3.0 per cent, and flat profits. Shortly after the announcement, its shares dropped 12.5 per cent, briefly marking the supermarket giant’s worst trading day in history. The report gives the sales and share-price figures, but doesn’t describe how the result affected Coles workers or customers.

Other companies moved on reported sales and revenue. Reece, a plumbing and waterworks supplier, rose 8.44 per cent to $17.09 after reporting a 4.3 per cent increase in sales revenue for the first quarter of the 2027 financial year. Endeavour Group gained 4.31 per cent to $3.39 after reporting a 3.0 per cent rise in retail sales for the first 14 weeks of the new year; its hotels division recorded a 1.9 per cent sales increase.

Gains and Losses Across the Exchange

Woodside climbed 1.80 per cent to $33.33, Santos rose 1.31 per cent to $9.25 and Ampol edged up 0.03 per cent to $38.28. December Brent futures moved towards US$117 ($A166) a barrel amid renewed Middle East tensions. Origin Energy added 0.82 per cent to $12.23 after announcing a 32 per cent revenue increase, largely due to higher LNG prices.

Healthcare shares rose too. CSL gained 1.64 per cent to $200.73, Sigma Healthcare added 0.37 per cent to $2.73 and ReMed closed 0.37 per cent higher at $35.51. The headline index edged up, but individual companies still absorbed sharp losses and gains tied to reported results and AI-related fears. There’s no election, legislative response or mutual-aid initiative in the report; it tracks corporate movements and share prices.