Alphabet sinks 10% as weak AI search monetization and $8.2B SpaceX write-down mar strong quarter
ivan_bezdomny · x · 2026-10-29
- Alphabet shares fell 10% after hours as management admitted fast-growing AI Mode queries monetize worse than classic search: Search revenue rose 12% to $63.35B, missing the $64.85B estimate and slowing from 17%, even as query growth hit a five-year high.
- An $8.2B markdown on its SpaceX stake drove EPS down 26% to $2.12 vs $3.01 expected.
- Total revenue grew 25% to $127.58B; Google Cloud surged 103% to $30.71B; YouTube ads missed at $11.21B; R&D costs climbed 36%.
- Capex guidance held at $195-205B for 2026 with further increases in 2027; Q3 free cash flow was negative $9.1B, and compute constraints forced Google to tap third-party capacity.
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