Alphabet shares hit an all-time high earlier this year but are down 11% year to date, while the S&P 500 is up 10%, as investors worry about heavy AI spending and a post-earnings dip. Third-quarter revenue rose 25% year over year to $127.6 billion, below analyst estimates, while net EPS fell 26% to $2.12 and free cash flow was negative $9.1 billion versus positive $24.5 billion a year earlier. Google Cloud was a bright spot, with sales of $30.7 billion, up 103%, and a cloud backlog of $561 billion, up 262%, of which 55% (about $309 billion) is expected to be recognized over the next 24 months. The article also points to the Gemini app reaching one billion users and strong demand for Alphabet's custom AI chips, and argues the post-earnings dip is not justified. It notes Alphabet trades at 18x forward earnings versus an average of 17x for communication services stocks.
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GOOGLartificial intelligencecloud computingearnings
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Related tickers and likely impact
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $3.5T |
| Close on 10/30/2026 | 279.76 |
| Change that session | -1.43% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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