Alphabet (GOOGL) shares fell about 10% in pre-market trading after its third-quarter report, even as Google Cloud grew 103%. Revenue of $127.57 billion and EPS of $2.12 both missed expectations of $128.2 billion and $3.02. Search sales of $63.4 billion came in below the $64.9 billion expected, fueling concerns about competition from Claude and ChatGPT. Free cash flow was negative $9.1 billion versus a negative $3.5 billion estimate, in a market already jittery about negative free cash flow at Big Tech. Pivotal Research CEO Jeffrey Wlodarczak said consumers interact with less advertising when using Google search and AI, while AI users (1 billion) and queries are at a 5-year high.
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GOOGLearningsartificial intelligenceadvertisingcloud 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 10/28/2026 | 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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