Alphabet Is Having Its Worst Earnings Day Ever. Here's What It Means for Your ETFs
Alphabet missed earnings estimates and raised capital spending, wiping out free cash flow and hitting exchange-traded funds with concentrated holdings.
- Alphabet shares fell roughly 13% in premarket trading on Thursday, October 29, 2026, after third-quarter results disappointed investors and ended a 12-quarter streak of earnings beats.
- Alphabet's capital spending surged 114% to $51.36 billion as the company invested heavily in AI infrastructure, pushing free cash flow to negative $9.07 billion for the second consecutive quarter.
- Communication Services ETFs like XLC took the hardest hit, holding roughly 23% in Alphabet combined across share classes, while Microsoft maintained positive free cash flow and returned $10.2 billion to shareholders.
- Management suspended buybacks entirely but maintained the $0.22 quarterly dividend, as CEO Sundar Pichai argued that strong demand for cloud services justifies the infrastructure spending surge.
- Ben Barringer, global head of technology research at Quilter Cheviot, described the results as "fairly messy" and the earnings call as "poorly handled," leaving investors watching for future cash flow pressures.
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15 Articles
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NEW YORK (ANP) - Alphabet, Google's parent company, plummeted on the stock market on Thursday following concerns about high AI spending and disappointing growth in its advertising division. Investors pushed the stock down nearly 13 percent, resulting in a loss of approximately half a trillion in market value...
Alphabet's share price plunged by about 13 percent on the New York Stock Exchange. Google's parent company lost nearly 500 billion dollars in value in one fell swoop, making it one of the largest stock market crashes ever. This occurred after the company published its quarterly earnings. The overall sentiment on the US stock markets was nothing to write home about. The Dow Jones index opened down 0.3 percent, the S&P 500 index was 0.4 percent l…
The shares of the Google matrix fall 12% after negative quarterly results, with a free cash flow of -9,065 million. The technology faces its worst trading day since 2020, affected by large AI expenditures and falls in advertising revenues.
Alphabet Is Having Its Worst Earnings Day Ever. Here's What It Means for Your ETFs
Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction) shares are down about 13% this morning, trading near $283, after third-quarter results disappointed. CNBC reported the stock was on course for its biggest post-earnings drop on record. If you own the Communication Services Select Sector SPDR Fund (NYSEARCA:XLC) or Invesco QQQ (NASDAQ:QQQ), you took part of that hit […]
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