Oct 30, 2026
Alphabet stock fell 12.6% on Thu, Oct 29 as AI spending burned $9B in cash
Alphabet stock fell 12.6% on Thu, Oct 29, its worst day on record, after Q3 free cash flow came in at minus $9.07 billion and search revenue growth missed forecasts. The S&P 500 slipped 0.3% and the Nasdaq fell 1.4%.
Sir Toastimir
Footage: Google DeepMind, Google, NYSE (YouTube)
Not financial advice. This is a news recap, not a recommendation to buy or sell any stock.
The market on Thursday
Alphabet stock fell 12.6% to $283.82 on Thursday, October 29, down from $324.89 the day before. CNBC and NBC News called it the company's worst day on record, erasing roughly $500 billion in market value. The S&P 500 slipped 0.3% to 7,720.39 and the Nasdaq fell 1.4% to 26,184.72. The Russell 2000 rose 1.0% to 2,859.22, and most stocks in the S&P 500 rose.
Why Alphabet fell
Alphabet reported third-quarter results after the close on Wednesday, October 28. Free cash flow was minus $9.07 billion, against analyst expectations of about minus $2.7 billion, according to CNBC. Reuters reported that the prior quarter's minus $5.9 billion was the first negative free cash flow in the company's history. Capital spending reached $51.36 billion in the quarter.
Revenue rose 25% to $127.58 billion, below the $128.22 billion LSEG estimate. Search and other revenue grew 12% to $63.35 billion, also below estimates. Adjusted earnings per share were $2.67, against $3.02 expected. Reuters said the revenue miss and the faster AI-related cash burn revived worries about AI spending.
The spending plan
Alphabet kept its 2026 capital spending forecast at $195 billion to $205 billion. Its chief financial officer said spending will increase significantly in 2027. Google Cloud revenue more than doubled to $30.71 billion, which beat estimates.
Other AI moves
Amazon fell 4.25% to $243.79 ahead of its earnings report after the close. ServiceNow fell about 27% to $109.67 after its quarterly results.
Footage in the video
Clips are from Google DeepMind and Google Gemini videos about Gemini 4 Argon, and the NYSE closing bell. Links are below.
Links
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