$GOOGL closed up 1.34% at $324.89 on Oct 28, then dropped 10.15% after hours to $291.92 once Q3 results came out after the close.
$GOOGL closed up 1.34% at $324.89 on Oct 28, then dropped 10.15% after hours to $291.92 once Q3 results came out after the close. Cloud doubled, and I still wouldn't rush to call this a dip until I see whether the cash-flow worry spreads to the rest of Big Tech.
- Google Cloud revenue grew 103% to $30.7B, with Alphabet's own earnings call remarks confirming the 103% growth. That's the AI payoff bulls have been waiting for.
- EPS came in at $2.12 against analyst estimates of roughly $3.01 to $3.03, and revenue was $127.6B against analyst estimates around $127.9B to $128.2B. Alphabet said an $8.7B loss on equity investments affected the quarter, so part of the EPS miss isn't operating weakness.
- Free cash flow was negative $9.07B, worse than about negative $5.9B in Q2. Search and ad figures also came in soft, so the ad engine isn't covering the buildout the way the market wants.
- What I'm watching next: whether cash burn becomes the theme across the rest of this earnings season's AI capex reports. If it does, smaller AI names get hit harder than Alphabet.
My read: the business is fine, but the market is now grading AI on cash flow as well as growth. I'd let the after-hours move settle before selling cash-secured puts. I could be wrong on the timing.
Sources:
TokenPost: https://www.tokenpost.com/news/business/42923
Newsquawk: https://www.newsquawk.com/headlines/alphabet-googl-q3-2026-usd-eps-212-exp-303-revenue-1276bln-exp-12791bln
Not financial advice. For informational and educational purposes only.
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End-of-day recap
The Fed held rates steady on Oct 28, 2026, while AI hardware earnings drove the largest single-stock moves of the session.
The Fed held rates steady on Oct 28, 2026, while AI hardware earnings drove the largest single-stock moves of the session. The S&P 500 closed at 7,744.20 (+0.28%), the Nasdaq at 26,549.85 (+0.27%), the Dow at 52,475.10 (+0.19%) and the Russell 2000 at 2,830.51 (+0.41%). The VIX fell 3.48% to 16.91; the 10-year yield sat at 5.05%.