Alphabet's stock has its worst day in over 20 years after disappointing quarterly results
Summary
Alphabet Inc. reported quarterly sales and profit that fell short of expectations, a sign that the company is failing to generate enough return to justify its massive investments in AI, Bloomberg reported on Wednesday 28 October, Fortune writing that Google Cloud revenue doubled to $31 billion while capital expenditures hit a record $51.4 billion and free cash flow was negative $9.1 billion. On Thursday 29 October a historic drop for Alphabet's stock dragged the U.S. stock market lower, The Philadelphia Inquirer and the LA Times reported, Fortune calling it the stock's worst day in over 20 years, which dragged the S&P 500 to a first loss in four days although four out of every five stocks in the index climbed. Bank of America now values Google's core search business at about 10 times earnings, against 18.7 for the S&P 500, Fortune reported on 30 October.
Latest: Fortune reported that Alphabet just had its worst day as a public company, Bank of America now valuing Google's core search business at about 10 times earnings, against 18.7 for the S&P 500.
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How it unfolded
Thursday 29 October
A historic drop for Alphabet's stock dragged the U.S. stock market lower, The Philadelphia Inquirer and the LA Times reported, Fortune calling it the stock's worst day in over 20 years, which dragged the S&P 500 to a first loss in four days, and CNBC writing that concerns rise that the Google parent is taking a hit from AI competition.
- 16:28LA Times A historic drop for Alphabet's stock drags market lower
- 16:19The Philadelphia Inquirer A historic drop for Alphabet's stock drags the US market lower
- 09:49The Philadelphia Inquirer A potentially historic drop for Alphabet's stock drags the US market lower
- 09:36The Philadelphia Inquirer Alphabet leads US stocks lower after reporting weaker-than-expected growth
- 07:41CNBC Alphabet drags on Nasdaq futures as the stock faces a record post-earnings loss
- 01:03The Philadelphia Inquirer Asian shares and U.S. futures are mixed after Google parent Alphabet's earnings disappoint
- 20:35Fortune SubscribersAlphabet just had its worst day as a public company. BofA now values Google search at a lower multiple than fossil fuel stocks
- 17:45Fortune SubscribersAlphabet’s stock has worst day in over 20 years, dragging the S&P 500 to first loss in four days
Wednesday 28 October
Alphabet reported quarterly sales and profit that fell short of expectations, Bloomberg reported, a sign that the company is failing to generate enough return to justify its massive investments in AI, and Fortune that Google Cloud revenue doubled to $31 billion as free cash flow was negative $9.1 billion.
- 16:06Bloomberg Alphabet Reports Disappointing Revenue, Income; Shares Drop
- 16:59Fortune SubscribersAlphabet’s Google Cloud revenue doubles to $31 billion as cash flow stays deep red