Alphabet Shares Close 12.64% Lower After Quarterly Results

Alphabet’s Class A shares (GOOGL) closed down 12.64% on Oct. 29 after quarterly results showed revenue growth alongside lower profit and capital expenditures that exceeded operating cash flow.

Alphabet’s third-quarter revenue rose 25% year over year to $127.577 billion. Net income fell 25% to $26.170 billion, and diluted earnings per share were $2.12.

Google Cloud revenue more than doubled, rising 103% to $30.709 billion. Google Search and other revenue increased 12% to $63.350 billion.

The company recorded $51.4 billion in capital expenditures and $42.3 billion in operating cash flow for the quarter. Subtracting capital expenditures from operating cash flow implies about $9.1 billion in negative free cash flow.

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