# Alphabet shares drop 13.5%

> Alphabet shares plunge 13.5% after Q3 results miss expectations.
- Title: Alphabet shares drop 13.5% · mint | Shortify
- Summary: Alphabet shares plunge 13.5% after Q3 results miss expectations. Alphabet shares dropped 13.5% following Q3 results that missed advertising revenue…
- Keywords: alphabet, google, q3 results, free cash flow, advertising revenue, ai infrastructure, nasdaq, capital expenditure, news, india, shares, drop
- Source: mint — https://livemint.com/market/stock-market-news/alphabet-shares-plunge-13-set-for-biggest-1-day-drop-in-over-20-years-why-is-google-parent-falling-after-q3-results-11793284509177.html
- Author: A Ksheerasagar
- Published: 2026-10-29T15:26:57+00:00
- Read time: 1 min
- Topics: alphabet, google, q3 results, free cash flow, advertising revenue, ai infrastructure, nasdaq, capital expenditure, news, india
## Alphabet shares drop
Alphabet shares plunged 13% after quarterly results disappointed investors.
## Advertising revenue shortfall
Advertising revenue missed expectations by $1.4 billion, causing a $9.1 billion negative free cash flow.
## AI infrastructure costs
Alphabet burned $5.9 billion on AI infrastructure, marking first negative free cash flow in 22 years.
## Capital expenditure plans
Alphabet plans to increase capital expenditure from $195 billion to $205 billion in 2027.
## Google Cloud growth
Google Cloud revenue doubled to $30.7 billion with 103% year-on-year growth.
## Search queries rise
Search queries grew 11% to $96.3 billion, with commercial searches up 12%.
## Nasdaq impact
Nasdaq Composite dropped 1.4% to its intraday low following Alphabet's decline.
## Market reaction
Investors concerned about AI spending sustainability and cash burn extending into second quarter.
## Key takeaway

Alphabet shares dropped 13.5% following Q3 results that missed advertising revenue expectations and caused two straight quarters of negative free cash flow.