Alphabet’s free cash flow sinks further, Q3 capex expectations miss in worrying sign for AI trade
Analysts expect $55.2 billion in third-quarter capex as Alphabet expands AI and cloud infrastructure, even as free cash flow turns negative.
- Ahead of Wednesday's earnings report, Alphabet faces negative free cash flow for the first time, with analysts projecting a $2.27 billion deficit in the third quarter.
- Rising capital spending drives this cash flow pressure; in July, the company lifted full-year guidance to $195–$205 billion, with annual spending expected to exceed $300 billion in 2027.
- Alphabet's cloud division is projected to grow 90% to $28.7 billion, gaining share from Amazon Web Services and Microsoft Azure, while OpenAI and Anthropic intensify pressure on the core Search business.
- Shares of the Google parent have dropped about 7% in October, while analysts at Citizens warned that 'execution risk exists' and they are 'incrementally cautious on Search' amid rising agent competition.
- To maintain dominance, Google is aggressively adding Gemini models to enterprise offerings and ramping sales of custom TPUs as agents redefine the search landscape and competition intensifies.
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Shares in Google parent Alphabet plummet on profit miss, ad slowdown
Alphabet spent US$51.4 billion on capital expenditure in Q3, mostly on data centres and AI chips, more than double the amount spent a year earlier. (EPA Images pic)WASHINGTON: Shares in Google parent Alphabet fell more than 10% in after-hours trading Wednesday as the company reported lower-than-expected profit and a slowdown in its advertising business while it maintained big spending on AI.Net profit slid 25% from a year earlier to US$26.2 bill…
Alphabet, Google's controller, released its third quarter financial results after closing the market on Wednesday, falling short of revenue projections due to below-expected advertising sales, despite the growth of 103% of Google Cloud. Net profit fell 25% compared to the same period of the previous year, reaching $26.2 billion in the period, or $2.12 billion per action, falling well below analysts' forecasts. Revenue was $127.93 billion. Revenu…
(San Francisco = Yonhap News) Correspondent Kwon Young-jeon = Google's parent company, Alphabet, recorded over 100% growth in its cloud business, yet its overall performance fell short of expectations and...
Reformatorisch Dagblad
Google parent company Alphabet achieved higher revenue in the third quarter but saw profit decline. Revenue from the cloud division increased the fastest, driven by strong demand for computing power and artificial intelligence applications. The net result took a hit due to investment losses by Google.
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