Alphabet falls 10% in premarket, putting it on course for its biggest ever post-earnings drop
What happened
Alphabet shares fell 13% on Thursday, their steepest drop since Google listed in 2004, erasing roughly $500 billion in market value, CNBC reported.
The slide followed third-quarter results in which Alphabet posted free cash flow of minus $9.07 billion, while analysts had expected a $2.7 billion figure.
The Google parent kept its full-year capital spending forecast at $195 billion to $205 billion.
Search advertising, its biggest revenue source, rose 12% to $63.35 billion but fell short of analyst forecasts.
Alphabet's chief business officer Philipp Schindler said lower monetization in AI Mode partly explained the search miss, and that the company is now scaling ads in AI Overviews and AI Mode.
Microsoft traded largely flat after reporting free cash flow down 27% to $18.63 billion, still positive, with capital spending below forecasts.
Summary written by AI from 1 independent source (CNBC) and checked automatically against them for copied text and numbers that are not in the sources. How we work
Open on the live globe →Who reported it
- 2026-10-29 08:54 UTCCNBC · cnbc.com ↗
- 2026-10-29 16:06 UTCSky News · news.sky.com ↗
- 2026-10-29 16:24 UTCBusiness Insider · seekingalpha.com ↗
- 2026-10-29 18:50 UTCMarketWatch · marketwatch.com ↗
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