Alphabet's Class A shares fell 12.6% to $283.82 on Thursday, their worst day since trading began in 2004, wiping out about $482 billion in market value. BofA values Google search at about 10 times earnings, below energy at 13x and the S&P 500 at 18.7x forward earnings per FactSet. Search and other revenue rose 12% in the latest quarter to $63.35 billion, short of the 15% analysts expected and below the 17% growth of the prior quarter, while Google Cloud revenue more than doubled, up 103% to $30.71 billion. Alphabet spent $51.4 billion on capital expenditures, more than double a year earlier, and free cash flow was negative $9.1 billion. BofA analyst Justin Post kept his Buy rating but cut his price target to $380 from $430 and lowered the multiple he is willing to pay to 24 times from 27, citing the 'slowdown in high-margin search growth.'
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GOOGLvaluationearningscloud computing
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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 10/29/2026 | 283.75 |
| Change that session | -12.66% |
QQQ
• NeutralInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/29/2026 | 715.33 |
| Change that session | -1.42% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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