Alphabet (GOOGL) shares fell more than 10% in premarket trading on Thursday after its core advertising and search businesses showed weakness and results missed analyst expectations. Morningstar said Alphabet’s AI strength remains intact and raised its fair value estimate to $450 from $433, 38% above the last close and above Wall Street’s average price target of $329.68 according to Koyfin. Google Cloud grew 103% last quarter, and Search & other revenue rose 12% to $63.3 billion, down from 17% growth in Q2, while overall advertising sales rose 10.6% to $82.01 billion. Chief Business Officer Philipp Schindler attributed the slowdown to foreign exchange rates, weaker Asia-Pacific retail advertising after the EU ended its de minimis exemption, and an unusually strong Q2 boosted by the FIFA World Cup, and noted that AI Mode carries fewer ads.
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GOOGLearningsadvertisingcloud computingartificial intelligence
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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% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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