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Related tickers and likely impact
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: medium
| 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% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Alphabet shares plunge as search weakness overshadows Google Cloud growth
Alphabet (GOOG) shares plunged more than 11% on Thursday after third-quarter revenue and earnings per share missed expectations, with search revenue rising 12% against a 15% forecast and YouTube advertising reaching $11.2 billion versus $11.4 billion expected. Google Cloud revenue grew 103%, beating expectations of 93%, with operating margins of 36.2% and backlog rising to $561 billion from $510 billion. Bank of America kept its rating but cut its price target to $380 from $430, while UBS lowered its target to $332 from $380 and kept a Neutral rating, questioning whether external TPU sales will lift profitability as cloud margins were flat quarter over quarter. Investors remain concerned about spending, as Alphabet kept its 2026 capital expenditure outlook at $195 billion to $205 billion and recorded negative free cash flow for a second straight quarter, more than $9 billion in the red. Kathleen Brooks of XTB said the main concern for investors is weaker-than-expected advertising and search results.
- Google Search Revenue Miss Drove Alphabet's Third-Quarter Top-Line Shortfall, BofA Says
- Alphabet (NASDAQ:GOOGL) posts Q3 2026 sales in line with estimates but stock drops
Alphabet (NASDAQ:GOOGL) reported Q3 2026 revenue of $127.6 billion, up 24.7% year on year and in line with Wall Street's $127.9 billion estimate. GAAP EPS of $2.12 fell 29.5% short of the $3.01 consensus, mainly due to an $8.7 billion loss on equity securities versus a $10.7 billion gain a year earlier. Operating margin rose to 31.8% from 30.5%, while free cash flow margin was -7.1%, down from 23.9%. The article notes five-year annualized revenue growth of 14.5%, ahead of Amazon (11.4%), Microsoft (14.2%) and Apple (5.2%), and argues Alphabet is somewhat expensive but still worth owning. It also questions whether generative AI products such as ChatGPT could disrupt Google Search, which accounts for 53.1% of revenue and holds over 80% market share.
- GOOG Stock On Track To Erase Over $600B In Market Value In A Month — Analysts Flag Search Slowdown, Margin Pressure
- Is Alphabet a Stock to Avoid or a Once-in-a-Decade Buy on the Dip?
Alphabet shares slipped after its third-quarter earnings report and are down about 20% from a May peak. Google Search holds about 90% of the search market, while AI products such as Gemini and TPUs, along with Google Cloud, are driving growth. Free cash flow was negative about $9 billion, deeper than negative $5.8 billion in the second quarter, and revenue and net income missed analyst estimates. Still, revenue rose 25% to $127 billion and Google Cloud revenue surged 103% to more than $30 billion, while the company kept its $195 billion to $205 billion capex guidance for the year and said spending will rise significantly next year. The author argues that the stock at 27x forward earnings, down from nearly 34x, may be a once-in-a-decade opportunity for growth investors, while noting that a slowdown in demand is a risk.
- Amazon Earnings On Deck After Rivals Microsoft, Google Post Strong Cloud Growth
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Nvidia has struggled to gain a foothold in China because of US Commerce Department export restrictions in place since 2022. The New York Times reported that US intelligence believes Alice Huang, a leader at Nvidia customer Megaspeed with a well-documented relationship with Jensen Huang, acted as an intelligence asset and passed information to China's governing party, raising questions about information leakage from Nvidia. In December 2025, the Trump administration allowed some H200 chip exports after a $5 million lobbying push during the year, but H200 sales made up less than 1% of Nvidia's $89 billion second-quarter data center revenue, as Beijing blocked Chinese buyers from purchasing Nvidia chips. Nvidia said its forward outlook includes no China data center compute revenue. The article also describes a black-market trade smuggling chips through Southeast Asia and Blackwell B300 chips being openly sold on Douyin at millions of US dollars per server.
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- Okta vs. UiPath: Which Technology Stock Is a Better Buy in 2026?
The article compares Okta (OKTA) and UiPath (PATH), two software companies with different models: Okta provides identity and access management, while UiPath offers an automation platform. Okta reported FY 2026 revenue of nearly $2.9 billion, up about 11.8%, and net income of close to $235.0 million versus $28.0 million a year earlier; free cash flow was nearly $863.0 million, though stock-based compensation was roughly 61.5% of operating cash flow. UiPath posted revenue of roughly $1.6 billion, up about 12.7%, net income of nearly $282.3 million and free cash flow of approximately $352.2 million, with stock-based compensation at roughly 78.3% of operating cash flow. The piece outlines Okta's competition and cybersecurity risks and UiPath's reliance on a limited number of large customers, and the author leans toward Okta, citing growing demand for identity security.
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McGraw Hill launched a plugin for Microsoft 365 Copilot that ties Copilot use to higher education workflows and licensed digital course materials. Microsoft's share price return was 17.71% over 90 days and 57.03% over 3 years, while the 1-year total shareholder return was slightly down 1.14%. A Simply Wall St narrative puts fair value at $419.91, below the last close of $531.01, and suggests Copilot optimism and strong cloud results may already be heavily reflected in the stock. On the other side, the article cites return on equity of 30.2%, a net profit margin of 40.3%, and a valuation model showing the stock trading about 22.5% below its estimate of future cash flow value. It also notes the stock looks expensive against a peer P/E average of 24.8x and significant insider selling over the past three months.
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