Alphabet’s Google Cloud more than doubled its revenue to $30.7 billion in the third quarter, helping to soften some of the more tepid growth from Google Search and YouTube. But for investors, it wasn’t enough. Despite the strong showing from its cloud business, investors sold off and Alphabet’s after-hours stock price dropped more than 11% following the release of its quarterly results. The drop wiped out more than $280 billion in market value. Aptus Capital Advisors head of equity and portfolio manager David Wagner wrote that Google Cloud did what it was supposed to this quarter. “The problem is everything else,” wrote Wagner. Investors are concerned about sluggish growth in Google’s search business, amid fears it might be swallowed up by “AI cannibalizing the franchise,” Wagner wrote. Google Search rose 12% to $63.4 billion, a marked slowdown from 17% growth in the second quarter and 19% in the first. Analysts were expecting the search business to grow 15%. Read more [paywall removed for Redditors]: https://www.fortune.com/2026/10/28/alphabet-google-stock-drops-cloud-revenue-doubles-free-cash-flow-negative/ submitted by /u/fortune
Originally posted by u/fortune on r/ArtificialInteligence