Market drop wipes out more than a trillion dollars in value

As investors worry about massive spending on the A.I. buildout paying off, earnings reports drove markets down. NBC News’ Brian Cheung reports on what happened on Wall St. and the hack on crypto exchange Binance.

Alphabet’s shares fell by 13%, erasing more than $500 billion in market value in the company’s worst single-day performance after it reported slowing search revenue growth.

Big tech companies have raised and spent hundreds of billions of dollars to build massive AI data centers and develop AI models. Investors are becoming increasingly concerned as they search for clear signals that investments are producing returns.

Google shares fell 12 percent in morning trading after the company reported its first combined revenue and profit miss in nearly four years, driven in part by a sharp swing into negative free cash flow.