Alphabet has its worst day since Google's 2004 IPO, falling nearly 13% after negative free cash flow and a rare miss
CNBC's two pieces lay out the miss line by line, the $9 billion cash-flow hole, the debt jump and why analysts disagree on what it means for search.
Alphabet reported third-quarter revenue of $127.58 billion, up 25% but short of the $128.22 billion analysts expected, and adjusted earnings of $2.67 a share against $3.02 expected. CNBC calls it the company's first top-and-bottom-line miss in nearly four years. Free cash flow was negative $9.07 billion, far below the negative $2.70 billion analysts expected, and long-term debt rose to $125.1 billion from $21.6 billion a year earlier.
Search revenue grew 12% to $63.35 billion, missing estimates; Alphabet's business chief said lower monetization in AI Mode was part of the reason. Google Cloud revenue more than doubled to $30.7 billion, ahead of forecasts. Alphabet kept its 2026 capital spending forecast at $195 billion to $205 billion and said spending will rise significantly in 2027.
The shares fell about 9% after hours on October 28 and closed down nearly 13% on October 29, which CNBC reports is the stock's worst day since Google went public in 2004, erasing roughly $500 billion in market value.
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Capital expenditure
After exploring Alphabet sinks 10% as it holds 2026 capex unchanged, expects significant increase in 2027, to see what the hyperscalers are actually spending on, read Capital expenditure.
Wikipedia explains capital expenditure as money a company spends to buy, maintain or improve fixed assets such as buildings and equipment, as opposed to day-to-day operating costs.
Wikipedia · Wade · 5 min
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