Alphabet (GOOG) shares fell 19% over the past month, mostly after its Oct. 28 third-quarter report: Search & other rose 12% to $63.4 billion but was about $1.5 billion short of estimates. Capex reached $51.4 billion, above $42.3 billion in operating cash flow, leaving free cash flow negative at $9.1 billion, and the CFO expects capex to increase significantly in 2027. Cloud revenue grew 103% to $30.7 billion with a 36.2% operating margin, while Google Services' $39.2 billion in operating income remained more than three times Cloud's $11.1 billion. At about 20x forward earnings versus a five-year average of 23x, the author argues Jim Cramer's view that Alphabet is “lost for all but cloud” goes too far, and says he would start buying in small amounts.
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GOOGL
▼ Likely negativeAlphabet Inc. (Class A)
Relevance: medium
| 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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