Alphabet shares slide despite Google Cloud growth topping 100%
📉 Alphabet shares fell about 10% after hours on October 28. Q3 revenue rose 25% year over year to $127.58 billion but missed expectations.
☁️ Google Cloud revenue surged 103% to $30.71 billion. The growth was insufficient to offset concerns about advertising performance and cash flow.
💰 Free cash flow was negative $9.07 billion, while quarterly capital expenditure reached $51.36 billion as AI infrastructure expansion required substantial funding.
🏗️ Alphabet maintained its 2026 capital spending outlook of $195–205 billion and expects a significant increase in 2027, keeping cash generation in focus.
🔎 The market reaction suggests investors increasingly want evidence of returns on AI spending. Sustained Cloud growth and stronger cash generation will be key to supporting long-term confidence.
#Alphabet $GOOGLB
📉 Alphabet shares fell about 10% after hours on October 28. Q3 revenue rose 25% year over year to $127.58 billion but missed expectations.
☁️ Google Cloud revenue surged 103% to $30.71 billion. The growth was insufficient to offset concerns about advertising performance and cash flow.
💰 Free cash flow was negative $9.07 billion, while quarterly capital expenditure reached $51.36 billion as AI infrastructure expansion required substantial funding.
🏗️ Alphabet maintained its 2026 capital spending outlook of $195–205 billion and expects a significant increase in 2027, keeping cash generation in focus.
🔎 The market reaction suggests investors increasingly want evidence of returns on AI spending. Sustained Cloud growth and stronger cash generation will be key to supporting long-term confidence.
#Alphabet $GOOGLB
