Hardware Ready Ready to Bench?
On October 29, 2026, Alphabet’s stock recorded its worst daily performance in history. Class A shares closed the session at $283.82, marking a decline of 12.64%. This drop resulted in an estimated market value loss of nearly $500 billion, according to data reported by Fox Business Markets and CNBC. The event interrupted a streak of three consecutive days of gains for the S&P 500 index.
Why it matters
The third-quarter results highlighted specific tensions in the company’s core business. Total revenues, amounting to $127.6 billion with 25% year-over-year growth, came in below analyst expectations. In particular, Google Search revenue growth slowed to 12% on an annual basis, compared to 17% recorded in the previous quarter. This data was interpreted by the market as a signal of artificial intelligence’s impact on the online search sector. Despite this, Google Cloud revenues exceeded estimates, reaching $30.7 billion with 103% year-over-year growth.
The numbers
Capital expenditures (capex) for the quarter amounted to $51.4 billion. The annual guidance for these expenses was maintained in a range between $195 and $205 billion, confirming the commitment to AI infrastructure. Free cash flow proved more negative than analyst forecasts. For comparison, Alphabet’s previous record daily loss had been $275 billion in July, while the absolute record held by Nvidia dates back to January 2025 with $589 billion.
What remains to be understood
Anat Ashkenazi, Chief Financial Officer of Alphabet, warned that Google Cloud could face profit margin pressures in the short term. The indicated cause is reliance on external computing capacity to meet current demand. It remains to be evaluated how these infrastructure costs will impact overall profitability in coming quarters, in a context where slowing search revenues continue to raise concerns among investors.
Sources: CNBC Top News, CNBC Top News, CNBC Top News, Business Insider Markets, Fox Business Markets, Kiplinger.
This article is for informational purposes only and does not constitute financial advice or an investment recommendation.
* Content created with the assistance of artificial intelligence systems.