Alphabet reported a much larger negative free cash flow of $9.07 billion in Q3, far below analyst expectations of $2.70 billion, causing its shares to drop about 10% in premarket trading. Microsoft, meanwhile, saw a 27% decline in free cash flow to $18.63 billion but remained positive and beat capital expenditure estimates, leading to nearly 4% gains in its shares. Alphabet maintained its full-year spending guidance despite the cash flow hit, raising investor concerns about its AI investments and spending strategy. This contrast highlights differing investor confidence in how these tech giants manage growth and costs amid heavy AI-related investments.
Alphabet shares on Pluang dropped 10.06% to USD 292.22 as of Oct 29, 2026, 15:51 WIB, reflecting a sharp market reaction to its Q3 cash flow miss. Microsoft shares gained 3.39% to USD 549.00 in the same period, showing stronger investor confidence despite a decline in free cash flow. Pluang data also shows Alphabet's market cap at $3.90 trillion, slightly below Microsoft's $3.95 trillion, highlighting the close competition between these tech giants.
Alphabet reported $51.36 billion in Q3 2026 capital expenditures, causing some institutional investors to worry about cash burn. However, the company's AI-focused investments are driving significant growth, with Google Cloud revenue doubling to $30.7...
Google's AI-powered search is seeing faster query growth but generates less revenue per query compared to traditional search, causing a slowdown in overall Search revenue growth. Executives acknowledged that while AI Mode queries are longer and more ...
Alphabet's shares fell 10% after missing earnings expectations and signaling increased AI-related spending without a clear payoff timeline. Despite Google Cloud's 103% growth, Alphabet's heavy capital expenditure and negative free cash flow alarmed i...
Alphabet reported slower-than-expected revenue growth in its core search business, with search revenue up 12% but missing estimates for the second consecutive quarter. This slowdown is attributed to a shift as more users turn to AI-powered bots and a...
The US Federal Reserve delivered a policy update aligned with market expectations, easing macroeconomic concerns and prompting a market rally. However, Alphabet's Q3 report revealed a 479% increase in long-term debt due to heavy AI investments, raisi...
