Key facts
- Alphabet's net income and EPS missed expectations.
- Alphabet's capital expenditures are surging.
- Microsoft generated nearly $19 billion in free cash flow.
- Samsung reported record earnings and pledged a shareholder return program of up to 110 trillion won.
- The Fed will reduce the number of policy-setting meetings to six per year starting in 2028.
- Two FOMC meetings in 2028 will be dedicated to strategy.
Alphabet shares tumbled 10% in after-hours trading, erasing $396 billion in market value, after the tech giant reported a $9 billion negative free cash flow and missed earnings expectations. The company's capital expenditures are surging, leading to concerns about its ability to fund future investments. In contrast, Microsoft's shares gained 2.9% after reporting nearly $19 billion in free cash flow, highlighting the market's preference for companies with strong self-funding capabilities. Samsung's stock also fell 5% despite record earnings and a significant shareholder return program. Meanwhile, Federal Reserve Chair Kevin Warsh's dovish remarks led to a drop in Treasury yields, and he announced a surprise change to the FOMC meeting schedule, dedicating one meeting per year to strategy.