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 $30.71 billion and operating income tripling to $11.12 billion year-over-year. Despite a GAAP EPS miss partly due to equity losses, Alphabet's operating income rose nearly 30%, and its return on invested capital remains high at 29.6%. The company funds its expansion through debt and share issuance, which may dilute shareholders, but cloud profits are growing faster than spending, supporting a long-term bullish outlook. Investors should watch if cloud profits continue to outpace capex.
Alphabet's shares on Pluang dropped 11.02% to USD 289.10 as of Oct 29, 2026 18:33 WIB, reflecting heightened investor caution amid concerns about its capital expenditures. Despite this, the stock remains widely held with 88% buy orders and a market cap near $3.96 trillion. The company's enterprise value stands at $3.85 trillion, showing strong overall market confidence even as some institutions sour on its spending strategy.
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...
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 $...
