Alphabet Shares Drop Over 10% Premarket as Q3 Revenue Miss Ignites Global AI Selloff
GOOG is trading near its 52-week low of $267.17 (8.5% above the low) on elevated volume (2.1× avg).
Summary
Alphabet's Q3 revenue missed Wall Street expectations, driven by weaker-than-expected search sales, and the stock fell over 10% in premarket trade. The miss overshadowed a cloud business that is still growing fast, and analysts are questioning whether Alphabet can monetize AI-powered search. The reaction spread globally: Nasdaq futures fell 1.1%, and Samsung shares dropped on a soft outlook despite a ninefold jump in operating profit, pulling U.S. chipmakers lower premarket. This follows the Q3 report showing $127.6B in revenue, up 25% year over year, with Google Cloud at $30.71B (+103%) and a $7.66B operating loss. The core issue is that AI spending and capex are running ahead of the profit proof investors now demand.
At the time of this announcement, GOOG was trading at $289.99 on NASDAQ in the Technology sector, with a market capitalization of approximately $4T. The 52-week trading range was $267.17 to $404.47. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.