Alphabet Shares Fall 13% After Earnings as RSI Stands in Oversold Territory

Alphabet’s Class C shares fell 13.01% to $280.02 at 9:42 a.m. ET Thursday, extending a post-earnings selloff as the daily RSI stood in oversold territory.

GOOG later traded at $281.63, down 12.51%, at 9:43:56 a.m. ET; the intraday low was $278.30. The daily relative strength index, or RSI, was 21.55, below the 30 level commonly used to mark oversold conditions. The reading reflects recent price momentum and does not establish a reversal.

Alphabet’s third-quarter revenue rose 25% year over year to $127.577 billion, but diluted earnings per share declined to $2.12 from $2.87 a year earlier.

Operating cash flow of $42.290 billion was below $51.355 billion in property and equipment purchases, leaving free cash flow negative $9.065 billion for the quarter ended Sept. 30.

Google Cloud revenue climbed 103% to $30.709 billion. Alphabet named enterprise AI infrastructure and solutions among the contributors to that growth.

Google and Alphabet CEO Sundar Pichai said, “Our AI investments are driving overall Search query growth, including commercial queries.”

Shares had already dropped about 10% in premarket trading Thursday; the regular-session decline widened after the market opened.