Alphabet (NASDAQ:GOOGL) shares fell 12.6% on Thursday, wiping out nearly $500 billion in market value and $23,400 from the Google holdings of investor Joseph Carlson. Carlson, who runs stock analysis platform Qualtrim, is not selling and believes Wall Street is overreacting. He also sees the shares as cheap.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
GOOGLartificial intelligencevaluation
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
- Alphabet stock crash leaves this trading metric at a level not seen in more than a decade
Alphabet (GOOGL) shares fell 12.6% on Thursday after its earnings report, wiping out nearly $500 billion in market value, and dropped another 1% in premarket trading on Friday. Yahoo Finance AlphaSpace data shows its price-to-earnings (P/E) ratio is at a level not seen since 2012. Search sales of $63.4 billion came in below the $64.9 billion expected, fueling fears that rivals such as Claude and ChatGPT are eroding Google's search business. Negative free cash flow of $9.1 billion also missed the Wall Street estimate of negative $3.5 billion. After the report, 13 Wall Street analysts cut their price targets on Alphabet.
- 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.
- Google earnings checklist: Why YouTube, Search, & Cloud are key
Needham & Company analyst Laura Martin outlines the key drivers she will watch in Alphabet's (GOOG, GOOGL) earnings report, due after market close on Wednesday. She says search revenue is central, with consensus expecting 15% growth, an acceleration that would suggest AI is not eating the search business. Google Cloud grew 90% last quarter, and she wants to see it keep taking share from AWS while margins rise. Her note values YouTube at $340 billion, about 10% of Alphabet's total market cap, and says it has grown about 20% a year. In her view, proprietary data from Search and YouTube feeds Google's Gemini model and could give it more pricing power over time versus rivals such as Anthropic and OpenAI.
- Alphabet Is Set to Become an Even Bigger Anthropic Shareholder After the IPO
Anthropic, one of the fastest-growing AI companies, could become the biggest IPO in history at a targeted $2 trillion valuation, above SpaceX's $1.77 trillion debut. Alphabet is estimated to own about 14%, starting with a 10% stake for about $300 million in late 2022 and early 2023, then investing $500 million more and agreeing to invest $1.5 billion additional. According to Anthropic's S-1, Alphabet has an exclusive option to buy up to $10 billion in additional shares at the IPO price and $20 billion in unused investment capacity. At $2 trillion, Alphabet's stake would be worth $280 billion, and the article suggests Alphabet will likely remain the second-largest shareholder behind Amazon, which holds 15%-20%. Anthropic's post-money valuation of $965 billion is already reflected in Alphabet's net income, and that value would more than double at a $2 trillion IPO.
- Why YouTube's Native Multimodal Library and AI Search Overviews Make Alphabet a Must-Own Compounder
The author revisits Alphabet (GOOGL) after the stock slipped 7.96% over the past week, arguing that YouTube and Search are turning AI into revenue. In Q2, revenue reached $119.80 billion, up 24.2%, while Google Cloud grew 82% to $24.77 billion and operating income rose 30.4% to $40.77 billion. The article flags risks from capex doubling to $44.92 billion, free cash flow of -$5.86 billion, and long-term debt rising from $46.5 billion to $98.2 billion. It compares Alphabet's P/E of 14 with 30 times for Microsoft and 35 for Amazon, and notes the Gemini app has 950 million monthly active users.
- Alphabet (GOOGL) Stock Looks Below Fair Value After AI Spending Plans
Alphabet's stock is around US$334.76 and has returned 176.4% over the past 3 years. A Simply Wall St article uses a discounted cash flow (DCF) model, citing about $90.8b of free cash flow over the last twelve months and forecasts where cash flow dips before rising. The article says this suggests the share price does not fully reflect the cash flows that could follow Alphabet's heavy AI investment, including Gemini models and cloud tools. Alphabet's P/E is 16.8x.
Related markets
Latest news
- Apple Sentiment Cautious On December-Ending Quarter Outlook
Apple stock is trading near record highs ahead of its fiscal fourth-quarter report, due late Monday.
- 'Banks Have Gotten Drunk' on AI Megadeals, USD.AI Co-Founder Says
According to USD.AI co-founder Conor Moore, speaking to Benzinga in an exclusive interview, Wall Street banks favor huge AI financing deals while smaller GPU operators struggle to borrow. He says banks have 'gotten drunk' on these large IG deals.
- This Little-Known ETF Owns QQQ's Stocks Without the Big Bet on Nvidia
The article compares QQQ and QQQE, two funds that hold the Nasdaq-100 stocks but weight them differently. As of June 30, 2026, NVIDIA made up 7.60% of QQQ's net assets, while as of July 31, 2026, it was only 0.97% of QQQE; QQQ's six largest holdings came to about 32.4%, versus roughly 5.9% for QQQE. QQQE reported $1.33 billion in net assets, compared with $490.1 billion for QQQ, which the article says is roughly 368 times larger. The article notes QQQE has come out ahead over the past year and so far in 2026, though equal weighting lags when the largest companies lead the market. It also points out that QQQE's smaller size may mean wider bid-ask spreads and a higher risk of closure, while QQQ's management fee is 0.18%.
- Amazon Says It Will Start Selling Its AI Chips to Other Companies in 2027
In its third-quarter call on October 29, 2026, CEO Andy Jassy said Amazon will start selling its Trainium AI chips to outside companies in late 2027, but named no buyers, prices, volumes or revenue targets. Diluted EPS of $1.89 missed the $1.96 consensus, and shares fell 7.30% to $226.00 after hours, following a 4.25% regular-session drop. Trailing 12-month free cash flow was a $42.4 billion outflow against about $220 billion of 2026 capital spending, and selling chips outright books revenue sooner than renting them through AWS over a five-to-six-year life. The open-sourced TorchNeuron software lets PyTorch code run on Trainium and could weaken NVIDIA's CUDA lock-in, though NVIDIA still leads with data center revenue of $89.02 billion in one quarter, up 117%. AWS sales rose 39% to $46.0 billion, while supply of advanced chips remains the main constraint.
- SK Hynix Just Delivered Fantastic News for Micron
SK Hynix reported third-quarter sales up 328% to $78.9 billion and operating profit up 632% to $62.3 billion, and said memory orders now exceed its supply for the next three years. The company expects demand to outpace supply through 2030, a view the article contrasts with analyst estimates that shortages could ease from 2028. Micron, whose fiscal fourth-quarter 2026 sales rose 379% to $54.2 billion and EPS jumped 811% to $75.52, could benefit from this trend as tech giants are estimated to spend $1.3 trillion on AI infrastructure in 2027. SK Hynix and Micron hold about 25% and 24% of the global DRAM market, according to Counterpoint Research. Since Micron's shares have surged 1,400% over three years, the article suggests investors review how much of their portfolio is in memory stocks.
- Firefly Aerospace Landed on the Moon, Won a Pentagon Contract, and Partnered With Lockheed Martin. So Why Is the Stock Down 70%?
Firefly Aerospace shares are down roughly 26% so far in 2026 and 70% from their one-year high set in May, despite a successful Moon landing, a Pentagon contract, and a partnership with Lockheed Martin. The article attributes the pullback to waning hype around defense tech and space stocks after SpaceX's public debut, along with rotation toward AI-exposed companies. Concerns about expanding losses and financing needs have also weighed in, as the operating loss widened to about $190.9 million in the first half of the year from $112.9 million a year earlier. The company is valued at roughly 6.9 times expected forward sales, and the article says a rebound may require new contract wins and partnerships or a shift in broader market dynamics.
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.