Yahoo Finance's Brian Sozzi notes that Alphabet's P/E has fallen to its lowest level since 2012 after the company posted negative free cash flow of $9.1 billion in the quarter, versus a Wall Street estimate of negative $3.5 billion, and more than $500 billion in market value was erased in a single day. He argues earnings estimates have not bottomed, citing slowing search and YouTube. For the P/E to recover, he says estimates would need to rise, the market would need to believe earnings will reaccelerate around mid next year, or Alphabet would need to cut capex, and he does not expect this to happen in the near term.
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Related tickers and likely impact
GOOGL
• NeutralAlphabet Inc. (Class A)
Relevance: low
| 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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