Alphabet Shares Experience Record Single-Day Decline Following Q3 Earnings Miss
Alphabet (GOOGL) shares suffered their worst single-day performance in history, falling approximately 12.3% on October 29 following a third-quarter earnings report that missed Wall Street expectations. While revenue grew 25% year-over-year and cloud revenue more than doubled due to AI adoption, the company reported adjusted earnings per share of $2.67 against an expected $3.02, and total revenue fell short of consensus estimates. Investor concern centered on a significant deterioration in free cash flow, which reached negative $9 billion compared to the projected negative $2.7 billion. Additionally, Google services revenue missed forecasts by over $2 billion, as search engine growth slowed significantly. Executives noted that increased AI-mode queries resulted in lower monetization levels, fueling fears regarding how generative AI might disrupt Alphabet's dominant search advertising business.
Tickers: $GOOGL
Topics: Alphabet earnings report Berkshire Hathaway portfolio changes cloud revenue growth stock market performance
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Part of the story Alphabet Reports Third Quarter Earnings Miss Amid High AI Capital Expenditures (6 articles)