Alphabet shares fall more than 13% early in trading, marking its largest single-day drop in history

TechFlow News, October 29 — According to Bitget market data, Alphabet, Google's parent company, opened sharply lower in US stocks, with its decline now widening to 13%, marking its largest single-day drop in history, and its market capitalization falling by more than $500 billion from the previous trading day's close.

The company's Q3 revenue was $127.58 billion, up 25% YoY, below market expectations of $127.91 billion; adjusted EPS was $2.67, below expectations of $2.97. Google Cloud revenue rose 103% YoY to $30.71 billion, but its core advertising business underperformed expectations, and free cash flow recorded a net outflow of $9.07 billion. Markets are concerned that as AI spending continues to climb, slowing search advertising growth may further pressure profitability and cash flow.

Source: TechFlow