Alphabet shares tumble 12% as earnings miss and cash flow turns negative
Alphabet’s stock slides 12% on Thursday, wiping about $500 billion from its market value. The decline follows a 12% rise in Google Search revenue to $63.4 billion, below analysts’ 15% expectation, and a negative free cash flow of $9.1 billion in the third quarter, its second consecutive loss. Capital spending across the sector tops $740 billion this year, with Alphabet planning up to $205 billion in 2026 and higher spending in 2027.
Key facts
- Microsoft seeks to raise $25 billion in its first U.S. investment‑grade bond issuance in nine years.
- Oracle shares jumped nearly 11% after announcing a cap on external financing and positive cash flow expectations for fiscal 2028.
- Amazon’s shares fell roughly 7% after earnings and revenue missed analysts’ expectations.
- The Nasdaq index dropped 2.9% on Friday, led by Qualcomm down 11% and Nvidia down 4%.
- Brian Mulberry of Zacks Investment Management says Microsoft is the only major cloud provider that can keep expanding AI capacity while still generating cash.
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Why it matters
Alphabet’s slump highlights pressure on big‑tech earnings as massive capex outpaces revenue growth.
What changed
First published from CNA, The Economic Times, Fortune and TechCrunch