Alphabet shares (GOOG) fell 17.5% last month, according to S&P Global Market Intelligence, despite strong third-quarter results with revenue up 25% year over year to $127.6 billion. Google Cloud revenue rose 103% and Google Search revenue rose 12%, but investors worried about negative free cash flow after $51 billion in capital expenditures for AI infrastructure and possible share losses to AI rivals such as ChatGPT and Claude. Search remains the largest revenue source at $63 billion last quarter, and the Gemini app has reached 1 billion users, though how much revenue they generate is unclear. The article argues that at 21 times enterprise value-to-EBIT, the stock looks cheap for a company growing revenue at 25%, provided it keeps Search revenue and grows Google Cloud.
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GOOGLcloud computingAI investmentearnings
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Related tickers and likely impact
GOOGL
▼ Likely negativeAlphabet Inc. (Class A)
Relevance: low
| 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.
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