Alphabet crashes on cash flow miss

Alphabet shares plummeted twelve percent in morning trading on Thursday after the company reported negative free cash flow of nine point zero seven billion dollars for the third quarter.

The miss was far worse than expected

Analysts had expected negative free cash flow of only two point seven zero billion dollars.Alphabet maintained its full year capital expenditure guidance of between one hundred ninety five billion and two hundred five billion dollars.

Microsoft's results reassured investors

Microsoft reported forty five point two billion dollars in capital expenditures and finance leases, thirty percent higher than a year ago but below analyst projections of fifty point sixty seven billion dollars.

Search revenue misses and AI drags

Alphabet's search advertising grew twelve percent to sixty three point thirty five billion dollars but missed analyst expectations.

Worst post-earnings drop ever looms

If Alphabet closes more than nine point seventy seven percent lower on Thursday, it would be its worst post-earnings reaction ever since the company went public in two thousand four.

“If Alphabet closes more than 9.77% lower on Thursday, it would be its worst post-earnings reaction ever.”

Long-term search advantage remains

Rosenblatt Securities analyst Scott Devitt said Alphabet's four billion search customers position it to benefit when AI monetization challenges are resolved, giving it an enviable position over peers.

“Alphabet, with its 4 billion search customers that become AI customers, is in an enviable position.”