Alphabet Shares Plunge 10% in Premarket Following Disappointing Free Cash Flow Results
Alphabet (GOOGL) shares experienced a significant premarket decline of approximately 10% following its third-quarter earnings report. The primary driver for the sell-off was a reported negative free cash flow of $9.07 billion, which significantly missed analyst expectations of a $2.70 billion deficit. Despite the cash flow miss, Alphabet maintained its full-year capital expenditure guidance between $195 billion and $205 billion. In contrast, Microsoft (MSFT) saw its shares rise nearly 4% as investors reacted positively to its capital expenditures coming in below analyst projections. While Microsoft's free cash flow fell by 27%, it remained positive at $18.63 billion. The divergent reactions highlight growing investor scrutiny regarding the immediate returns on massive AI-related infrastructure investments among big tech firms.
Topics: AI Spending Alphabet Earnings Capital Expenditure Free Cash Flow Microsoft Earnings
Part of the story Microsoft and Alphabet Earnings Reveal Divergent Paths Amid AI Infrastructure Spending (8 articles)