Meta and Alphabet both missed Q3 GAAP EPS estimates because of one-time charges, while their ad businesses kept growing and negative free cash flow from heavy capex drew investor focus. Meta's revenue rose 26.1% to $64.60 billion with average price per ad up 14%, and its EPS would have been $7.40 without a $9.89 billion legal charge. Google Cloud revenue jumped 103% and its operating income reached $11.12 billion, versus $3.59 billion a year earlier. Capex rose 114.4% at Alphabet and 85.4% at Meta, and both are raising outside funds through debt and share sales, which brings dilution and higher interest costs. Meta gave no 2027 figures and will wait until its Q4 call, while the author prefers Alphabet's setup but stays skeptical of both while free cash flow is negative.
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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 | $3.5T |
| Close on 10/30/2026 | 279.76 |
| Change that session | -1.43% |
META
▼ Likely negativeMeta Platforms
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.6T |
| Close on 10/30/2026 | 614.98 |
| Change that session | -1.53% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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