Alphabet, Google's parent company, suffered its largest single-day decline in history on October 29, with shares dropping 13% and erasing more than $500 billion in market value from the previous close. The plunge followed third-quarter earnings that fell short of Wall Street expectations despite strong revenue growth.
Q3 revenue reached $127.58 billion, up 25% year-over-year but below the consensus estimate of $127.91 billion. Adjusted EPS came in at $2.67 versus the expected $2.97. While Google Cloud posted a standout 103% year-over-year increase to $30.71 billion, core advertising revenue underperformed, and free cash flow swung to a net outflow of $9.07 billion.
Investors are increasingly concerned that surging AI infrastructure spending combined with slowing search advertising growth will continue to pressure Alphabet's profitability and cash flow.
Alphabet Suffers Record Single-Day Drop as Q3 Earnings Miss Expectations, Wiping Out $500B in Market Value
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
