Alphabet / Google Earnings Shock — Stock Falls 9% AH on Negative Free Cash Flow
Google reported 25% revenue growth to $127.6B but the stock fell 9% after hours as capex hit $51.4B and free cash flow turned negative for the second consecutive quarter. Microsoft rose 3% the same night.
What we know
An account on X relays: Alphabet grew revenue 25% to $127.6B but the stock fell 9% AH, with capex at $51.4B and FCF negative $9.1B — its second cash-burning quarter in a row, while $MSFT rose 3%. @FT flags the potential for this drop to wipe over $400B from Google's market cap. Another account on X was already asking 'We buying?' with GOOGL under $300 after hours.
How the story developed
Google reported 25% revenue growth to $127.6B but the stock fell 9% after hours as capex hit $51.4B and free cash flow turned negative for the second consecutive quarter. Microsoft rose 3% the same night.
Google's earnings triggered a sharp -10% AH selloff driven by higher-than-expected 2027 capex guidance and TPU ramp pressure on free cash flow, even as core AI products showed strength. Bulls argue this sets up a contrarian entry.
Sources
“Google share price drop could wipe more than $400bn from group's market value”
View post →By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.