Microsoft and Alphabet reported earnings on the same day with contrasting market reactions due to their free cash flow performance amid heavy AI investments. Alphabet missed search revenue expectations by $1.5 billion and had negative free cash flow of $9.1 billion, driven by $51.4 billion in capital expenditures exceeding operating cash flow. Microsoft, meanwhile, beat revenue forecasts with strong Azure growth and maintained positive free cash flow of nearly $19 billion despite rising capex. Investors now see free cash flow as the critical metric to judge AI investment returns, with Microsoft favored for its cash generation and Alphabet pressured to improve cash flow or slow spending. Upcoming quarterly results and 2027 capex plans will be key to Alphabet's stock outlook.
Alphabet's stock price dropped 11.02% to USD 289.10 on Pluang, with a market cap of $3.96 trillion and strong buy interest at 88% as of Oct 29, 2026 18:33 WIB. Microsoft shares rose 1.53% to USD 539.13, holding a similar market cap of $3.94 trillion but showing a majority sell sentiment at 77%.
Alphabet's shares fell more than 10% in premarket trading after missing earnings and revenue forecasts, with AI chat tools eating into Google's Search revenue for the second consecutive quarter. This is concerning as Search is a key high-margin busin...
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...
