AI-powered contentSome parts of this article are powered by AI.
Share this article
Summary
Alphabet (GOOGL) shares fell 13% in one session after its third-quarter report, erasing about $500 billion in market value, according to The Motley Fool.
Alphabet's free cash flow came in at negative $9.1 billion against analysts' estimates of $2.7 billion, while Amazon's trailing 12-month free cash flow was an outflow of $42.4 billion.
Palantir beat estimates and raised its 2026 revenue outlook, yet its shares dipped about 3% in extended trading, as reported by CNBC.
Gotrade News - Alphabet (GOOGL) shares fell 13% in one session after its October 28 third-quarter report showed free cash flow turning negative, erasing about $500 billion in market value, according to The Motley Fool. Amazon (AMZN) and Palantir (PLTR) shares also eased after their own reports.
Amazon shares were down about 2% in the session after its October 29 report, TIKR reported, while Palantir shares dipped about 3% in extended trading on Monday despite beating estimates, as reported by CNBC. The backdrop is a heavy spending cycle: Alphabet, Amazon, Microsoft and Meta Platforms aim to spend more than $700 billion on infrastructure this year, per The Motley Fool.
Q3 Scorecard: Alphabet, Amazon and Palantir Against Estimates
The table below sets each company's results, taken from its earnings report filed with the SEC, against the analyst estimates reported by XTB, The Motley Fool, TIKR (FactSet consensus) and CNBC (LSEG consensus).
Regular-session close on November 2, 2026, New York time. Prices and changes: Yahoo Finance, cross-checked against the closing price on Nasdaq.com.
Q4 Guidance: Amazon Sees $240 Billion to $247 Billion, Palantir $2.65 Billion
Amazon expects fourth-quarter net sales of $240 billion to $247 billion, up 12% to 16%, and operating income of $28.5 billion to $33.5 billion, according to the company's third-quarter release. The same release showed purchases of property and equipment of $77.3 billion in the quarter and trailing 12-month free cash flow of an outflow of $42.4 billion.
Chief executive Andy Jassy said Amazon expects to “spend meaningfully more in 2027” and that he sees AWS growth above 40% in both 2027 and 2028, as reported by TIKR. In the release, Jassy said, “Our AWS investment in functionality and infrastructure is working.”
Palantir guided fourth-quarter revenue to $2.649 billion to $2.653 billion and raised its full-year 2026 revenue outlook to $8.530 billion to $8.534 billion, which the company put at 91% growth, according to its third-quarter release. “Our U.S. commercial revenue has surpassed our U.S. government revenue for the first time in our company's history,” chief executive Alexander Karp said in the release. CNBC reported US government revenue rose 96% to $953 million.
Why Did Alphabet (GOOGL) Stock Fall 13%?
Parts of the report disappointed investors, The Motley Fool reported, including cash flow: free cash flow came in at negative $9.1 billion, per Alphabet's third-quarter release, against analysts' estimates of $2.7 billion. The Motley Fool also noted that Alphabet kept its 2026 capital expenditure forecast unchanged at $195 billion to $205 billion, and that investors are concerned AI growth may not justify current spending levels.
The release showed $51.4 billion of purchases of property and equipment in the quarter, while Google Cloud revenue grew 103% to $30.7 billion. Diluted EPS of $2.12 fell short of expectations of about $3.00, and net income dropped 25%, partly due to an $8.7 billion loss on equity investments, according to XTB. Chief executive Sundar Pichai said in the release that Alphabet is “now on a half-trillion dollar revenue run rate.”
Estimates of the market value lost vary: The National News Desk put it at $482 billion, against about $500 billion in The Motley Fool's count. Susannah Streeter of Wealth Club told the Daily Mail, as reported by The National News Desk, that “the days of rewarding companies simply for announcing massive AI investments have faded fast.” She added, “The AI opportunity remains enormous, but the market is no longer prepared to give companies a blank check to pursue it.”
This article is for education and information only and is not investment advice. Investment decisions are yours to make after your own research.
Gotrade is the trading name of Gotrade Securities Inc., which is registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
M. Alfathan Rahman is a content writer with over 3 years of experience developing digital content strategies across various industries, including fintech. He has experience producing content for tax-related websites and financial education platforms. His focus areas include data research, and crafting financial articles that are informative, accurate, and accessible to investors of all experience levels.
Hendrie Saputra holds a Master of Business Administration (MBA) with a concentration in Business Risk & Finance, along with professional experience in finance, marketing, and project management. He is experienced in analyzing market data and developing research-driven business strategies.
