Google plunges 10% as Q3 results miss expectations, free cash flow drops sharply, and doubts about returns on AI investment intensify
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老腊肉-kevin
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#谷歌财报能否守住基本盘 I just finished watching the market, and Google's earnings report left me shaking my head.
Earnings didn't beat expectations—it was a genuine miss.
Revenue came in at $127.5 billion, a few billion short. EPS was even worse: $2.12 versus the expected $3, missing by nearly a dollar. The stock plunged more than 10% after hours, wiping out most of its gains from the past six months in one fell swoop.
I listened to the earnings call. There was only one bright spot: cloud. Revenue surged 103% to $30.7 billion, margins climbed from 23% to 36%, and TPU sales also contributed quite a bit.
Gemini has surpassed 1 billion users. Sounds impressive.
But the main story was all the bad news: search advertising fell short of expectations, and free cash flow was negative for the second quarter in a row—plunging to negative $9 billion this quarter, versus market expectations of just negative $3.5 billion.
Capital expenditures were $51.3 billion, below expectations, but the full-year guidance wasn't lowered. In 2027, they plan to “increase significantly” again. Those were the CFO's exact words—it sounds painful.
Will money flow back into the AI trade?
The Nasdaq was up 0.55% that day, but Google itself tanked. It's not that people are done with AI; they're getting pickier.
Stories alone won't cut it—you have to deliver cash flow. Google's going through the growing pains of investing in AI, but the market is clearly running out of patience.$GOOGL $SOXL $KORU #谷歌将预览加密托管安全系统 #股票财报季
Earnings didn't beat expectations—it was a genuine miss.
Revenue came in at $127.5 billion, a few billion short. EPS was even worse: $2.12 versus the expected $3, missing by nearly a dollar. The stock plunged more than 10% after hours, wiping out most of its gains from the past six months in one fell swoop.
I listened to the earnings call. There was only one bright spot: cloud. Revenue surged 103% to $30.7 billion, margins climbed from 23% to 36%, and TPU sales also contributed quite a bit.
Gemini has surpassed 1 billion users. Sounds impressive.
But the main story was all the bad news: search advertising fell short of expectations, and free cash flow was negative for the second quarter in a row—plunging to negative $9 billion this quarter, versus market expectations of just negative $3.5 billion.
Capital expenditures were $51.3 billion, below expectations, but the full-year guidance wasn't lowered. In 2027, they plan to “increase significantly” again. Those were the CFO's exact words—it sounds painful.
Will money flow back into the AI trade?
The Nasdaq was up 0.55% that day, but Google itself tanked. It's not that people are done with AI; they're getting pickier.
Stories alone won't cut it—you have to deliver cash flow. Google's going through the growing pains of investing in AI, but the market is clearly running out of patience.$GOOGL $SOXL $KORU #谷歌将预览加密托管安全系统 #股票财报季
