Alphabet reported GAAP EPS of $2.12 against a consensus of $2.97, ending a 12-quarter streak of beats, and shares fell 12.64% on earnings day, from $324.89 to $283.82. The author attributes the miss to a one-time $8.70 billion loss on equity securities, which cut net income by $6.70 billion and diluted EPS by $0.55, and argues that this mark-to-market swing sits outside the ad and cloud businesses. The author points to revenue of $127.58 billion (up 24.6%), operating income up 29.93%, and Google Cloud revenue up 103% to $30.71 billion as evidence of strong core operations. The author also flags risks, including capex of $51.36 billion (up 114.4%), negative free cash flow of -$9.07 billion, and dilution from share sales under an at-the-market program. The stock stood at $279.84, down 18.67% over the past month.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: The EPS ‘Miss That Wasn’t Gave You and Me an Opportunity to Scoop Up Alphabet Cheaply
Read the original on Yahoo Finance ↗
Keywords
GOOGLearningscloud computingcapital expenditure
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Related tickers and likely impact
GOOGL
▲ Likely positiveAlphabet 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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