From mint · A Ksheerasagar · · 1m
Alphabet shares drop 13.5%
Alphabet shares plunge 13.5% after Q3 results miss expectations.
In brief
Alphabet shares plunge 13.5% after Q3 results miss expectations. Alphabet shares dropped 13.5% following Q3 results that missed advertising revenue expectations and caused two straight quarters of negative free cash flow. Originally reported by mint.
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.
In short
Alphabet shares dropped 13.5% following Q3 results that missed advertising revenue expectations and caused two straight quarters of negative free cash flow.
