Alphabet (NASDAQ:GOOGL) shares fell 12.1% in the morning session after third-quarter results showed slowing search advertising growth and surging AI capital expenditures. Revenue rose 25% to $127.58 billion, roughly in line with the $127.9 billion consensus, but diluted EPS of $2.12 missed the expected $3.02, partly due to an $8.7 billion loss on equity securities. Capital spending reached $51.36 billion, pushing free cash flow to negative $9.07 billion, and Google Search revenue grew 12% to $63.35 billion, below Street forecasts. CFO Anat Ashkenazi said capital spending will rise significantly next year from the current $195 billion to $205 billion guidance range, and the stock is now at $286.27, 28.9% below its 52-week high of $402.62.
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GOOGLearningsadvertisingartificial intelligence
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Related tickers and likely impact
GOOGL
▼ Likely negativeAlphabet Inc. (Class A)
Relevance: medium
| 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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