Alphabet reported its third-quarter results after the market closed on Wednesday. In premarket trading this morning, shares briefly plunged to around 292, down about 10% from the previous close.
Cloud revenue doubled this quarter, but free cash flow remained negative, and the market is more focused on the pace of spending.
Search ad growth slowed, and capital expenditures are set to rise further. In premarket trading, shares fell straight through the lows reached after July’s earnings.
Cloud’s doubling shows that enterprise AI orders are genuinely growing, but what shareholders see first is accelerating cash outflows.
After the U.S. market opens tonight, watch first to see whether shares can hold around 292. If they can’t recover, this pullback from the May high isn’t over yet.
Can cloud support the valuation, or will the spending story continue to weigh on the stock?
$GOOGL
#Alphabet #USEarnings
Cloud revenue doubled this quarter, but free cash flow remained negative, and the market is more focused on the pace of spending.
Search ad growth slowed, and capital expenditures are set to rise further. In premarket trading, shares fell straight through the lows reached after July’s earnings.
Cloud’s doubling shows that enterprise AI orders are genuinely growing, but what shareholders see first is accelerating cash outflows.
After the U.S. market opens tonight, watch first to see whether shares can hold around 292. If they can’t recover, this pullback from the May high isn’t over yet.
Can cloud support the valuation, or will the spending story continue to weigh on the stock?
$GOOGL
#Alphabet #USEarnings
