# Alphabet Shares Drop 10% in Premarket Trading After Revenue Miss

By Enna Lee

Canonical URL: https://www.tokenpost.com/news/investing/43331
Published: 2026-10-29T08:06:57.000Z
Updated: 2026-10-29T08:06:57.000Z
Section: Investing

> Cash use also increased, despite second-quarter cloud revenue rising 82% year over year.

Alphabet, Google's parent company, fell 10% in premarket trading Thursday, Oct. 29, after quarterly revenue missed expectations and cash burn increased.

The move came after strong recent growth in Google Cloud. Second-quarter cloud revenue reached $24.8 billion, up 82% from a year earlier, while backlog exceeded $514 billion. Gemini had 950 million monthly active users. Alphabet had also raised its capital expenditure plans as spending on artificial intelligence increased.

The 10% decline was larger than a 7% premarket drop in February 2025, when Alphabet also missed revenue expectations. The comparison puts the latest reaction against a period of rapid cloud growth and rising use of Gemini. The current update paired a revenue shortfall with greater cash consumption, bringing both sales performance and spending into focus.

Together, the figures offer context for the market response: Alphabet's cloud business and Gemini had posted strong growth, while its latest quarterly results fell short on revenue and showed increased cash use. The shares' premarket move reflects that combination of operating growth and financial pressure.