Alphabet (GOOGL) shares fell over 12% to $285 after its Q3 2026 earnings, wiping out nearly $500 billion in market cap. Cloud revenue rose 103%, but EPS of $2.12 missed the $3.02 estimate and free cash flow turned negative amid heavy AI capital spending. Several firms downgraded the stock or cut price targets, while technical indicators weakened, with the RSI deeply oversold and the MACD showing a sell signal. The author outlines a short strangle strategy expiring December 18, 2026, which would profit if GOOGL stays between $250 and $325, with the main risk being a drop below $250 and an unexpected catalyst pushing shares past $310. The author notes both the short call and short put have a probability of profit close to 90%.
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GOOGLearningscloud 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 10/29/2026 | 283.75 |
| Change that session | -12.66% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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