Alphabet shares fell about 10% in premarket trading, while Microsoft rose nearly 4%, as investors focused on AI spending and free cash flow in the quarterly report. Alphabet posted negative free cash flow of $9.07 billion, well below the $2.70 billion analysts expected, but kept its full-year capex guidance at $195 billion to $205 billion. Search advertising, its largest revenue source, grew 12% to $63.35 billion but missed expectations, partly due to lower monetization within AI Mode. Analyst Ben Barringer of Quilter Cheviot said Google has lost its edge with Gemini and is behind peers on agentic AI. A close more than 9.77% lower would be its worst post-earnings reaction since the company went public in 2004.
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Related tickers and likely impact
GOOGL
▼ Likely negativeAlphabet Inc. (Class A)
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/28/2026 | 325.61 |
| Change that session | +1.57% |
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/28/2026 | 725.59 |
| Change that session | +0.60% |
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/28/2026 | 772.35 |
| Change that session | +0.35% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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