Alphabet shares (GOOG, GOOGL) fell over 13% after third-quarter results, their biggest drop since the company went public in 2004, wiping about $482 billion off market value, the second-largest one-day loss in U.S. history. Revenue rose 25% to $127.6 billion, with Google Cloud up 103% to $30.7 billion, while search revenue grew 12% to $63.4 billion, slower than the 17% growth in the second quarter. Net income fell 25% to $26.2 billion as $8.2 billion in other expenses weighed on results, and capital expenditures hit a record $51.4 billion, leaving negative free cash flow of $9.1 billion for a second straight quarter. The article argues AI is both driving growth and costing heavily, and that slowing search growth raises concerns that AI agents are eroding Google's search dominance.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
GOOGLcloud computingartificial intelligenceearnings
Open a keyword to see other news on the same topic.
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% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Google owner Alphabet reports 25% revenue growth in Q3 2026
Alphabet, Google's parent company, reported consolidated revenue of $127.58bn for the quarter ended 30 September 2026, up 25% year-on-year and its 13th straight quarter of double-digit growth. Operating income rose 30% to $40.58bn, but net income available to common stockholders fell to $26.17bn from $34.98bn, and diluted EPS dropped to $2.12 from $2.87. Google Cloud revenue more than doubled to $30.71bn, with operating income of $11.12bn, which Alphabet attributed to enterprise AI infrastructure, enterprise AI solutions, core GCP services and TPU system sales. Google Services revenue grew 11% to $96.30bn, with Google Search & other at $63.35bn and YouTube advertising at $11.21bn. Purchases of property and equipment reached $51.36bn, and free cash flow turned negative at $9.07bn compared with positive $24.55bn a year earlier.
- Microsoft, Google report booming AI revenue as the tech reshapes business
Microsoft and Google attributed cloud growth to strong demand for AI services, executives said on Wednesday's earnings calls. Alphabet's core search revenue grew just 12% from last year, weaker than expected, as AI reshapes the company. Microsoft reported 19% revenue growth in its Q1 2027 call, driven by Azure as it builds out data center infrastructure. Microsoft's capital expenditures were $45.2 billion, up about 30% from last year, while Alphabet's were $51.4 billion in the third quarter versus $24 billion a year ago, mostly for technical infrastructure supporting AI. Forrester analysts said both companies must prove AI is a meaningful commercial growth engine, not just an infrastructure investment cycle.
- Alphabet Crushed Cloud Expectations, But the AI Bills Are Coming Due
Alphabet shares fell more than 11% on Thursday to near $287, one of the steepest single-day declines in the company's history, erasing $410 billion in market value. The drop followed the third-quarter report, which showed the first bottom-line miss against Wall Street consensus since the last quarter of 2022: earnings of $2.12 per share versus expectations near $3.02. An $8.2 billion unrealized loss on its stake in Space Exploration Technologies (SPCX) and a $5.2 billion cash payment for an EU antitrust fine weighed on the result. Google Cloud revenue more than doubled year over year and search queries posted their largest volume growth in five years, while capex reached $51.4 billion in the quarter, leaving a free cash flow burn of $9.1 billion. The article points to Google Cloud's backlog of $561 billion as evidence that AI demand is real, and says the core business remains a cash-generating engine.
- Citizens cuts Alphabet rating as search monetization trails query growth
Citizens downgraded Alphabet to Market Perform from Market Outperform, citing renewed headwinds in its search business, and Google shares were down around 12% at the open following third-quarter results. Search revenue of $63.3 billion rose 12% year over year but came in 2.5% below the $65 billion consensus, and search growth slowed about 5 points from the second quarter even as query growth hit a five-year high. Alphabet attributed the slowdown mainly to currency effects and weaker retail and media spending, but analyst Andrew Boone said the bigger concern is that AI Mode monetizes at a lower rate than traditional search as some valuable queries shift to AI chatbots. Boone remains positive on Cloud, which grew 103%, but views search as the better business driving Google's premium multiple, so he sees risk/reward as balanced at current levels, and noted that potential cost cuts could boost EPS.
- Alphabet Sinks 12% on Search Miss and $9 Billion Cash Burn: “Is This the Quarter We Feared?”
Alphabet shares fell 12% after its third-quarter report, as Search & other revenue grew 12% to $63.4 billion, about $1.5 billion short of estimates, and free cash flow came in at negative $9.1 billion. Search queries hit their highest level in five years, but management named currency as the biggest factor in the slowdown, while Chief business officer Philipp Schindler pointed to lower monetization in AI Mode. Capex hit $51.4 billion, and Alphabet kept its $195 billion to $205 billion annual forecast, implying another $63 billion to $73 billion in the fourth quarter. Google Cloud revenue rose 103% to $30.7 billion, with operating margin up to 36% from 24%. Microsoft's free cash flow fell 27% to $18.6 billion but stayed positive, and after the drop Alphabet trades around 20x forward earnings versus a five-year average of 23x.
- Alphabet heads for a $500 billion drop in market value, the biggest in its history
Alphabet (GOOGL) is on track for its worst day ever, falling about 13% on Thursday after its third-quarter results and wiping out nearly $500 billion in market value. That is the second-biggest one-day loss for a US-listed company, behind Nvidia's roughly $593 billion loss on Jan. 27, 2025, while Alphabet's previous worst day was about $275 billion on July 23. Google Cloud revenue more than doubled to about $31 billion and the Gemini app passed 1 billion users, but search revenue rose 12% to about $63 billion, short of the roughly $65 billion estimate. Free cash flow swung to a loss of about $9 billion as AI spending climbed, Pivotal Research's CEO said bears argue AI is starting to hurt the search business, and CFRA's Angelo Zino said the pullback probably represents an opportunity for investors.
Related markets
Latest news
- Tightening Resale of Social Housing After 5 Years: What Happens to Buyers' Rights?
The draft amended Housing Law proposes allowing social housing (NƠXH) to be resold only after 5 years and only to eligible buyers, instead of being transferred under the current market mechanism. Many opinions say a clear transitional mechanism is needed to protect those who bought under the old rules. A resident of the Đại Kim social housing project in Hà Nội said current listings are around 60-65 million VND/m², 4-5 times the original price of over 14 million VND/m², and worried that narrowing buyer eligibility and capping prices would hurt existing owners' rights. Lawyer Hoàng Hà (Ho Chi Minh City Bar Association) said the policy must clarify who can buy resold units, set transparent and objective pricing rules, and adopt transitional provisions based on when the buyer's rights were established. He argued that buyers who signed valid contracts before the new law takes effect should keep resale rights under the old rules, even if they have not held the home for 5 years or do not yet wish to sell.
- VPBankS Plans to Offer VND 6,000 Billion in Bonds
VPBankS (ticker VPX, HoSE) has approved a public offering of 60 million bonds, code VPXPO2627001, with a maximum value of VND 6,000 billion. The bonds are non-convertible, carry no warrants and no collateral, and all proceeds will supplement margin lending. The bonds have a 12-month term and a fixed 9.5% annual coupon paid every six months, with the offering expected from Q4/2026 to Q1/2027. Individual investors can buy at least 10 bonds (VND 1 million), and institutional investors at least 50,000 bonds (VND 5 billion). Separately, the company is collecting written shareholder opinions until 16:00 on 02/11/2026 on a plan to issue 843.75 million bonus shares at a 100:45 ratio, which would raise charter capital from VND 18,750 billion to VND 27,187.5 billion if completed.
- What SPS Commerce (SPSC) Said on Its Q3 Earnings Call
SPS Commerce (SPSC) reported third-quarter revenue of $197.6 million, up 4%, while adjusted EBITDA rose 17% to $70.9 million, a 36% margin above its long-term target. Amazon policy changes and the June 30 divestiture of the Revenue Recovery business reduced reported revenue growth by 500 basis points, prompting management to lower its outlook, though underlying growth remains in the high-single-digit range. The company highlighted rising adoption of its AI-powered MAX tools and expects advanced agent capabilities to become monetizable in 2027. It also repurchased $48.8 million of shares during the quarter.
- Grab Holdings And 2 Top Penny Stocks To Watch
The article notes that AI hardware spending is absorbing cash at large firms such as Amazon and Intel, while smaller companies face tougher funding as borrowing costs stay high, and profiles three low-priced stocks. Grab Holdings (market cap US$11.24 billion) runs a Southeast Asian superapp with deliveries revenue of about US$1.99 billion, mobility revenue of US$1.31 billion and financial services revenue of US$430 million; the article cites an expectation that its financial services unit will break even in the second half of 2026, though its expanding lending carries credit risk. Aurora Innovation (market cap US$10.28 billion) develops the Aurora Driver for autonomous trucks and ride-hail vehicles, and is operating driverless trucks in daily commercial freight with more than 500,000 commercial miles. SoundHound AI (market cap US$2.0 billion, revenue of about US$203 million) provides voice and conversational AI tools to enterprises. The article highlights risks around funding costs, execution and competition for each company.
- Thanh Duc Holding raises VND1,200 billion from bond market at 12.5% interest rate
Thành Đức Holding successfully issued 12,000 HTDL12601 bonds, each with a par value of 100 million VND, for a total of 1,200 billion VND on October 26, 2026. The 36-month bond issue is expected to mature on October 26, 2029, with an issue interest rate of 12.5% per year according to HNX. Information about bondholders, collateral, and the purpose of the issuance has not been disclosed. The company was established in November 2014 with charter capital of 6 billion VND; by October 2025, charter capital had reached 1,399 billion VND. Mr. Trần Trung Hiếu is currently the Director. Previously, the company mortgaged movable assets and asset rights of the Hyatt Regency Sapa Hotel Project to BIDV Thành Công (August 2024) and of the Cầu Rào urban area integrated school project (August 2025). The article also links Ms. Đoàn Thị Tơ, a founding shareholder who held 90% of the initial capital, with T&D Group Joint Stock Company, where she serves as Chairwoman of the Board of Directors.
- Sabeco to pay over VND3,800 billion in dividend advance as Q3 2026 profit declines
Sabeco plans to pay a 2026 interim cash dividend at a rate of 30% (3,000 VND per share), totaling nearly 3,848 billion VND from undistributed after-tax profit. The final registration date is December 29, 2026, and payment is scheduled for February 2, 2027. Vietnam Beverage Company Limited holds 53.59% of the capital and is expected to receive nearly 2,062 billion VND, while SCIC holds 36% and is set to receive over 1,385 billion VND. In Q3 2026, net revenue exceeded 6,684 billion VND (up 3.8%) and gross profit rose 6.7%, but net profit of nearly 1,272 billion VND fell 9.4%. For the first nine months, net revenue exceeded 20,029 billion VND (up 5.1%), after-tax profit reached nearly 3,761 billion VND (up 8.9%), equal to 69.2% of the annual revenue plan and 76.2% of the annual profit plan. Operating cash flow for the nine months was nearly 4,124 billion VND (up 23.1%). As of September 30, 2026, total assets decreased 8.2% to over 29,922 billion VND, and total liabilities fell 24.6% to over 7,238 billion VND.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.