Alphabet Shares Tumble

Summary

Updated Oct 28, 8:17pm ET

Alphabet shares fell more than 8% in after-hours trading after disappointing third-quarter results. Revenue rose 25% from a year earlier to about $127.6 billion, but it missed Wall Street forecasts. Net income fell 25% to about $26.2 billion, hurt by an $8.7 billion loss on equity investments. The drop landed as investors questioned whether Big Tech’s AI spending will pay off soon enough. Google search revenue grew 12%, while YouTube ad growth slowed. Google Cloud more than doubled, helping lift overall sales. CEO Sundar Pichai called the quarter strong and said Gemini had reached 1 billion users. CFO Anat Ashkenazi said capital spending should rise significantly in 2027.

Left and right

From the left

Only one left-leaning outlet we track covered this: The Guardian, under the headline “Investors turn on Google owner Alphabet after profit miss, ad slowdown and high spending”.

From the right

Only one right-leaning outlet we track covered this: New York Post, under the headline “Google parent Alphabet tumbles after profit disappoints, warns AI is battering its cash flow”.