Alphabet shares fell nearly 13% in the October 29 session, losing more than $41 per share and about $482 billion in market value, the second-largest single-day loss on Wall Street after Nvidia's $593 billion drop last year. The sell-off reflects heavy spending on AI infrastructure, which pushed free cash flow to negative $9.1 billion in the September quarter. Google Search and other revenue rose 12% to about $63.4 billion but missed analyst expectations for a second straight quarter. Search made up less than 50% of Alphabet's $127.6 billion in quarterly net sales for the first time in its history, while Google Cloud revenue surged 103% to an annual run rate of nearly $123 billion.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
GOOGLAI investmentcloud computingearnings
Open a keyword to see other news on the same topic.
Related tickers and likely impact
GOOGL
• NeutralAlphabet Inc. (Class A)
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $3.5T |
| Close on 11/02/2026 | 278.99 |
| Change that session | -0.30% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- GOOGL Q3 deep dive: AI investment drives revenue growth but profit falls short of expectations
Alphabet (GOOGL) posted Q3 2026 revenue of $127.6 billion, up 24.7% year on year and in line with Wall Street's expectations. However, its non-GAAP EPS of $2.12 fell 29.6% short of analyst consensus, and the stock drew a sharp negative market reaction. Management credited AI-driven momentum across Search, Cloud and YouTube, with Google Cloud revenue growing more than 100% on demand for AI infrastructure and TPU sales. Rising technical infrastructure and AI investment costs weighed on profitability, although operating margin reached 31.8% versus 30.5% a year earlier. CFO Anat Ashkenazi warned that infrastructure spending would continue to weigh on the P&L, while CEO Sundar Pichai expects continued acceleration over the next 12 months.
- Alphabet Lost $500 Billion in Market Value. Should You Really Buy AI Stocks Now?
Alphabet shares fell 13% in one session, their worst trading day ever, after parts of its earnings report disappointed investors and wiped out about $500 billion in market value. The concern centers on AI infrastructure spending: Alphabet kept its capex forecast unchanged at $195 billion to $205 billion, and free cash flow came in at negative $9 billion versus analysts' estimate of $2.7 billion. Google ads still accounted for 64% of total revenue, while the cloud business posted a record 103% revenue gain to more than $30 billion. Alphabet, Amazon, Microsoft and Meta together aim to spend more than $700 billion this year on infrastructure. The author argues that for most investors, the recent decline is a chance to buy at an attractive price, though more volatility could follow.
- What's Going on with Alphabet Stock? 3 Things Investors Should Know
Alphabet's third-quarter 2026 revenue rose 25% to $127.6 billion, but shares came under pressure after the report as investors grew concerned about advertising and AI spending. Google Search revenue reached $63.4 billion, up 12%, though management acknowledged that AI Mode queries currently generate less ad revenue than traditional Search. Google Cloud revenue more than doubled, up 103% to $30.7 billion, and its backlog reached $561 billion, with over 55% expected to be recognized within 24 months. Alphabet expects 2026 capital expenditures of $195–205 billion and indicated spending could rise substantially next year, pushing third-quarter free cash flow to negative $9.1 billion. Even so, operating income climbed 30% to $40.6 billion, with operating margin improving to 32%.
- Alphabet Missed Its Q3 Estimates, and I Couldn't Care Less
Alphabet's Q3 revenue rose 25% to $127.6 billion, but EPS fell 26% to $2.12 from $2.87, both missing consensus estimates of $128.2 billion and $3.02. Free cash flow turned negative at about $9.1 billion as capital expenditures rose to $51.4 billion from $44.9 billion in Q2, largely for AI infrastructure. Search advertising grew 12% to $63.5 billion, below the $64.9 billion expected and slowing from nearly 17% in Q2, while Google Cloud revenue soared more than 100% to $30.7 billion with operating income of $11.1 billion. The author argues the picture needs context: net income included an $8.2 billion unrealized loss on Alphabet's SpaceX stake, operating income rose 30% to $40.6 billion, and cloud backlog grew to $567.7 billion from $519.5 billion at mid-year, mostly AI-related. The author says capex is in line with the $195–205 billion full-year budget and that the results were, on balance, more good than bad.
- GOOGL Gains Premarket As Tech Selloff Eases: Alphabet Preps Second Euro Bond This Year
Alphabet rose 1% in premarket trading on Monday as tech stocks recovered from a brutal week and disappointing third-quarter results. Bloomberg reported the company plans its second euro bond sale this year to fund AI infrastructure, a seven-part deal with maturities of two to 19 years, with the 19-year notes offered at about 205 to 210 basis points over mid-swaps. Google Search & other revenue grew 12% to $63.3 billion, slowing from 17% in the prior quarter, while capital expenditure reached $51.36 billion and 2027 spending is expected to be higher than this year. Cloud unit sales doubled, but surging AI-related cash burn weighed on the results. Year to date, GOOGL is down 10.4%.
- Google Just Lost Half a Trillion Dollars. It Has a Real Problem With Search Monetization.
Google lost about $500 billion in market value after its Q3 earnings as AI search monetization lagged. Cloud growth offers some hope, but investors need evidence that advertising and cash flow can catch up with the company's AI spending.
Related markets
Latest news
- SLV Crashes To Near 52-Week Lows, GLD Falls Pre-Market – World Gold Council Cuts 2026 Gold Investment Forecast By Half
Gold and silver fell sharply as investors weighed the U.S. midterm elections, Middle East tensions and a rebound in oil prices; SLV dropped 3.2% to its lowest in nearly 52 weeks, while GLD slipped over 1.1% in pre-market trading. January 2027 gold futures fell 1.4% to $3,929.80 per ounce, and silver contracts due in January 2027 dropped 3.8% to $49.20 per ounce. Saxo Bank's Ole Hansen said gold was sold again near $3,970 an ounce, a former support level that has become resistance, pointing to fragile sentiment. KCM Trade's Tim Waterer said a convincing move above $4,000 an ounce would signal improving momentum, and warned that a tech selloff driven by regulatory pressure could spill over into gold as positions are cut to cover losses. The World Gold Council cut its 2026 full-year gold investment demand forecast to 200 metric tons from 400 MT, as demand for bars and coins fell 19% in the third quarter.
- Midterm elections could jolt stocks if Democrats sweep Congress
The stock market is not yet pricing in a Democratic sweep of Congress, though polls and most prediction markets point that way, investors and analysts said. JPMorgan sees a blue wave knocking the S&P 500 down about half a percent on Wednesday, while a Republican hold could spur a short-term rally. A Democratic win, especially in the Texas governor race, could add pressure to AI stocks over possible data center restrictions, while defense stocks could face spending limits and healthcare may benefit. Stocks have historically tended to rise after midterms, but some worry the S&P 500's strong 2026 gains could break that pattern.
- Prediction: At 1.6 Million Robots, Optimus Is “Greater Than the Revenue From Tesla.” Musk Sees 625x That
Venture capitalist Dave Blundin said on the Moonshots podcast that Optimus robot revenue could exceed Tesla's own revenue if the company builds 1.6 million robots a year, while Elon Musk has predicted well over a billion humanoid robots within 10 years. At $30,000 a robot, Tesla would need to sell about 4 million Optimus units to match the $122 billion in revenue analysts expect for 2027, while the company expects first deliveries to outside customers around the end of 2027. Tesla trades at 187x forward earnings, compared with a five-year average of 108x, and its latest quarterly GAAP operating margin was 2.6%. The author says he would want to see Optimus shipping to outside customers before paying for the stock's current valuation.
- Google Recently Warned That Quantum Computers Could Crack Bitcoin. Now It's Selling Protection.
On Oct. 28, Google Cloud previewed a new crypto custody system aimed at banks offering crypto products to clients. Its Multi-Party Compute (MPC) service splits each private key into fragments stored on separate systems; hacked or illegally obtained private keys accounted for 43.8% of crypto stolen in 2024, per Chainalysis, and commercial launch is planned for early 2027. Google Cloud revenue rose 103% year over year to $30.7 billion in the third quarter, but the author sees little reason MPC will meaningfully benefit Alphabet, given unknown pricing and many competitors. The article also notes MPC does not stop attacks that work backward from public keys, which expose more than 6 million bitcoins, almost 29% of the supply, held in wallets with exposed public keys.
- Binance's net inflows turn positive at $2.3B as withdrawals expand
Binance recorded $2.3 billion in net inflows over the past 24 hours, reversing Monday's outflows of more than $7 billion, as it expanded withdrawals after the $6.3 billion hack on Thursday. Binance led centralized exchanges tracked by DefiLlama; Bitfinex saw about $280 million and Bitget about $127 million. Binance said hourly deposits exceeded withdrawals by 03:00 UTC. The exchange had suspended withdrawals on Friday, began restoring them at 06:00 UTC on Sunday, and said it had replaced about 95% of the affected assets, with the remaining 5% being less liquid tokens. It pledged to cover the losses using company resources and protection funds without passing them on to customers. The FBI attributed the attack to North Korea, which denied responsibility on Tuesday.
- Azimut Undertakes New Mineral Resource Estimate on the Patwon Gold Deposit, James Bay Region, Québec
Azimut Exploration is preparing a new NI 43-101 mineral resource estimate for the Patwon gold deposit on its Elmer Property in Québec's James Bay region, using results from its 2026 diamond drilling program and the current higher gold price. The 2026 program drilled 10 holes totaling 5,407.05 metres, shorter than the planned 10,000 metres due to severe winter conditions, and intersected additional gold mineralization near the current resource shell. Norda Stelo is preparing the update, expected by the end of 2026; the 2023 estimate at US$1,800 per ounce reported 311,200 ounces indicated and 513,900 ounces inferred. The Elmer structural corridor spans 43 kilometres, including a gold anomaly 3.6 kilometres to the east grading up to 583 g/t Au. Azimut is also advancing its Wabamisk project, where significant drilling is planned for later this year and in 2027.
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.