Why did Google lose $500 billion in market value, according to the All-In hosts?

Jason Calacanis said Google fell 10% to 15% after Q3 earnings, wiping out about $500 billion, because search revenue missed for a second straight quarter and free cash flow turned negative. Search grew 12%, down from 17%, while Google Cloud doubled to $30.7 billion. David Friedberg said core ad growth may partly reflect a change in ad pricing that over-earns on clicks. Chamath urged Google investor relations to answer claims that it dropped its second-price ad auction.

• Friedberg said Google Cloud's quarterly operating income rose from about $3.5 billion to over $11 billion in a year.
• Chamath said keeping Demis Hassabis at Google is the single most important task for the company.
• David Sacks said search revenue still grew from $56 billion to $63 billion, so its share fell only because other units grew faster.
• Calacanis said he bought more Google shares during the recording.

▸In their words

“I tend to think Google's a little bit oversold on this news today.” David Sacks · at 1:13:15 — open in the transcript →

Source: our own transcription of the episode. The full conversation is on All-In with Chamath, Jason, Sacks & Friedberg (2026-10-30). Read the whole episode summary →

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