Key facts
- Alphabet's free cash flow turned negative for the first time ever.
- Shares are on track to shed more than $400 billion, a record single-day market loss.
- Search revenue growth slowed to 12% year-over-year.
- Capex is expected to increase significantly next year.
Alphabet shares are on track for their worst-ever single-day market loss, shedding over $400 billion after the Google parent reported dismal third-quarter results. The company missed earnings per share and revenue expectations, and its free cash flow turned negative for the first time. Search revenue growth also slowed to 12% year-over-year, raising concerns about pressure on its core business. Analysts from JPMorgan, Bank of America, Bernstein, and Citizens expressed disappointment and concerns about the company's AI spending and monetization strategies.