AI-powered contentSome parts of this article are powered by AI.
Share this article
Summary
Alphabet (GOOGL) fell 12.64% to $283.82 on October 29, 2026, its worst day on record according to CNN Business.
Financial media tied the drop to revenue from the core unit that includes search advertising missing analysts' expectations, alongside $51.4 billion in quarterly capital expenditures.
Google Cloud revenue grew 103% to $30.7 billion, while free cash flow for the quarter was negative $9.1 billion.
Gotrade News - In the latest Google stock news, Alphabet (GOOGL) shares fell 12.64% to $283.82 in the US session on Thursday, October 29, 2026, the first session after the company released its third-quarter results. Financial media tied the drop to revenue from Google's core business that missed analysts' expectations, alongside a sharp rise in AI spending.
According to CNN Business, it was the worst day on record for Google stock, erasing roughly half a trillion dollars of Alphabet's market value.
GOOGL Trading Data
Data
Value
Closing price
$283.82
Change
-$41.07 (-12.64%)
Previous close
$324.89
Day range
$280.36 to $288.33
Volume
139.7 million shares
30-day average volume
26.6 million shares
Regular-session close on Thursday, October 29, 2026, 4:00 p.m. New York time. Stock prices: Yahoo Finance, cross-checked against the closing price on Nasdaq.com. Volume and 30-day average volume: Nasdaq.com. Indices and the 10-year Treasury yield: Yahoo Finance daily closes for the same date.
Alphabet traded between $280.36 and $288.33 during the session and closed $3.46 above the day's low, finishing near the bottom of its range. Volume reached 139.7 million shares, 425.45% above the 26.6 million share average.
The move was far larger than the broader market's. The Nasdaq Composite fell 1.38% to 26,184.72, the S&P 500 slipped 0.30% to 7,720.39 and the Dow Jones Industrial Average lost 0.25% to 52,342.56, leaving GOOGL 11.26 percentage points behind the Nasdaq. The US 10-year Treasury yield eased 5.6 basis points to 4.99%.
Alphabet published its results on Wednesday, October 28, with its earnings call set for 4:30 p.m. ET, after the market closed, so Thursday was the first regular session to trade on them. According to the company's official release, revenue rose 25% to $127.6 billion, Google Services revenue rose 11% to $96.3 billion and Google Cloud revenue grew 103% to $30.7 billion.
As reported by The Wall Street Journal, Alphabet missed analysts' expectations on revenue from its core business unit that includes search advertising, and the stock's fall eclipsed its previous largest one-day loss of 11.6% in 2020.
Per CNN Business, investors also weighed slowing growth in search advertising against a continued ramp-up in AI spending. Capital expenditures reached $51.4 billion in the quarter, and Alphabet disclosed a second consecutive quarter of negative free cash flow, which the release puts at negative $9.1 billion. CNN Business contrasted this with Microsoft, which reported $18.6 billion in third-quarter free cash flow in its own quarterly results.
The earnings report also showed net income falling to $26.5 billion from $35.0 billion and diluted earnings per share falling to $2.12 from $2.87. The release attributes part of that decline to an $8.7 billion loss on equity securities, which cut diluted earnings per share by $0.55.
GOOGL Stock Analysis: Supporting Factors and Risks
Supporting Factors
Google Cloud revenue more than doubled to $30.7 billion, and the company said TPU system sales were a meaningful contributor.
Operating income rose 30% to $40.6 billion for a 31.8% operating margin, and CEO Sundar Pichai said Alphabet is "now on a half-trillion dollar revenue run rate."
Google Search and other revenue grew 12% to $63.4 billion, and Pichai said year-over-year query growth is "the highest it's been in the last five years," as reported by Verdict.
Risks
Quarterly capital expenditures of $51.4 billion left free cash flow negative at $9.1 billion, according to the company's release.
CNN Business reported renewed concern that users are turning to AI chatbots instead of traditional search, and Jed Ellerbroek of Argent Capital Management said the shift could happen "faster than Google can react to it and pivot their business."
Revenue from the unit that includes search advertising came in below analysts' expectations, per The Wall Street Journal.
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.
