Alphabet Reports Negative Free Cash Flow Amid Shift in Revenue Composition
Alphabet (GOOGL) experienced a historic single-session market value loss of $482 billion on October 29, marking its worst percentage decline since its 2004 IPO. The sell-off was driven by massive capital expenditures toward artificial intelligence infrastructure, which resulted in negative free cash flow of $9.1 billion for the quarter ending in September. Despite the market volatility, Alphabet reached a significant structural milestone: Google Search and other services accounted for less than 50% of the company's total quarterly revenue ($127.6 billion) for the first time in its history. While search revenue grew 12% year-over-year to $63.4 billion, it failed to meet Wall Street analyst expectations for the second consecutive quarter.
Topics: AI Infrastructure Spending Alphabet Inc. Free Cash Flow Google Search Revenue Market Capitalization Loss
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Part of the story Alphabet Reports Third Quarter Earnings Miss Amid High AI Capital Expenditures (6 articles)