【Google Cloud surged 103%, yet nearly $500 billion in market value evaporated】
The most awkward part of Google’s earnings report $GOOGLB is that the brighter the growth, the less impressed the market seems. Third-quarter Google Cloud revenue reached $30.7 billion, up 103% year over year, but Alphabet’s overall revenue of $127.6 billion fell short of market expectations, and adjusted EPS of $2.67 also missed the $3.02 forecast. About $482 billion in market value evaporated in a single day. Investors are clearly no longer satisfied with a growth story alone.
Google’s capital expenditures hit $51.4 billion this quarter, against operating cash flow of $42.3 billion, turning free cash flow negative at $9.1 billion. The company expects capital expenditures to reach $195 billion to $205 billion in 2026, with a further increase in 2027. Cloud orders and revenue are booming, but computing capacity, data centers, and chips are still burning through cash at a furious pace. Search advertising grew by just 12%, and the returns on AI investment are already lagging behind investor expectations.
The stock closed at $279.84 on October 30, just about 3.4% above its 52-week low of $270.70. The RSI has also fallen to around 21, indicating the stock is severely oversold in the short term. Google is more likely to first enter a choppy recovery range of $270–$310. The AI business hasn’t lost momentum; the market is simply starting to ask: when will the hundreds of billions spent actually turn into profits?
#股票财报季
The most awkward part of Google’s earnings report $GOOGLB is that the brighter the growth, the less impressed the market seems. Third-quarter Google Cloud revenue reached $30.7 billion, up 103% year over year, but Alphabet’s overall revenue of $127.6 billion fell short of market expectations, and adjusted EPS of $2.67 also missed the $3.02 forecast. About $482 billion in market value evaporated in a single day. Investors are clearly no longer satisfied with a growth story alone.
Google’s capital expenditures hit $51.4 billion this quarter, against operating cash flow of $42.3 billion, turning free cash flow negative at $9.1 billion. The company expects capital expenditures to reach $195 billion to $205 billion in 2026, with a further increase in 2027. Cloud orders and revenue are booming, but computing capacity, data centers, and chips are still burning through cash at a furious pace. Search advertising grew by just 12%, and the returns on AI investment are already lagging behind investor expectations.
The stock closed at $279.84 on October 30, just about 3.4% above its 52-week low of $270.70. The RSI has also fallen to around 21, indicating the stock is severely oversold in the short term. Google is more likely to first enter a choppy recovery range of $270–$310. The AI business hasn’t lost momentum; the market is simply starting to ask: when will the hundreds of billions spent actually turn into profits?
#股票财报季