Alphabet Misses on Profit and Sales as Cash Flow Turns Negative
The search giant's first double miss in nearly four years sent the stock sharply lower.
MarketBuzz Daily · · $GOOGL$GOOG
Alphabet reported third-quarter results that fell short of Wall Street forecasts on both profit and revenue. It is the company's first miss on both lines in nearly four years.
Free cash flow swung to a deficit of about $9.07 billion. That was far worse than analysts had expected.
Search revenue grew 12%, slower than in earlier quarters. The stock fell more than 10% in the next session.
“Alphabet missed Q3 expectations on earnings and revenue, its first top-and-bottom-line miss in nearly four years.”— as reported by CNBC
Key points
- Alphabet missed forecasts on both earnings and revenue in Q3, its first such miss in nearly four years.
- Free cash flow came in at a deficit of about $9.07 billion, well below analyst estimates.
- Search revenue rose 12%, slower than in prior quarters, and shares fell more than 10% the next session.
What it could mean for $GOOGL
This could be read as an early test of whether heavy AI spending is paying off for Alphabet's core search business. Slower search growth alongside negative free cash flow may push investors to ask harder questions about returns on that spending. Investors will be watching the next report for signs of whether growth re-accelerates and cash flow recovers.
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