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Alphabet misses profit and revenue targets as AI spending drives $9B cash burn, shares drop 10%.

Company Fundamentals
29 Oct 2026, 01:52 WIB
New York Post
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Bearish
Alphabet misses profit and revenue targets as AI spending drives $9B cash burn, shares drop 10%.

Alphabet reported lower-than-expected profit and revenue for Q3, with a $9.07 billion negative free cash flow driven by heavy AI-related spending. The company’s core ad revenue fell short by $1.41 billion, while Google Cloud revenue more than doubled but couldn't offset the ad decline. CFO Anat Ashkenazi warned of rising capital expenditures through 2027 due to AI investments and near-term margin pressure from third-party cloud use. CEO Sundar Pichai highlighted the launch of the Gemini 4 Carbon AI model to assert Alphabet's leadership in AI despite investor concerns about cash burn and competition.

Following Alphabet's announcement of disappointing profit and heavy AI spending, its shares have dropped sharply. On Pluang, Alphabet's stock (GOOGL) trades at USD 293.56, down 8.43% as of Oct 29, 2026 06:01 WIB. Despite the decline, the stock remains actively bought with 88% of orders being buys and a market cap of $3.90 trillion, reflecting continued investor interest amid the company's AI investment challenges.

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