Alphabet Shares Fall 9.85% as Google Cloud Revenue More Than Doubles

Alphabet shares fell 9.85% in overnight trading late Oct. 28 after its third-quarter results showed diluted earnings per share had declined, despite Google Cloud revenue more than doubling.

At 11:40:51 p.m. ET Oct. 28 (3:40:51 a.m. UTC Oct. 29), GOOGL was quoted at $292.88, down from its $324.89 regular-session close. Revenue climbed 25% to $127.577 billion, while diluted EPS was $2.12, down from $2.87 a year earlier. Net income available to common stockholders fell to $26.170 billion from $34.979 billion.

Google Cloud revenue reached $30.709 billion, up 103%. Segment operating income rose to $11.121 billion from $3.594 billion a year earlier. Sundar Pichai, CEO of Google and Alphabet, said cloud sales grew on demand for AI infrastructure and AI solutions.

Alphabet recorded an $8.664 billion net loss on equity securities, which reduced net income by $6.7 billion and diluted EPS by 55 cents. Free cash flow was negative $9.065 billion, compared with negative $5.855 billion in the second quarter.