Alphabet shares fell nearly 13% on October 29, 2026, taking Google’s parent company to a six-month low and wiping just over $500 billion from its market value. The decline followed quarterly results that showed strong cloud growth but lower profit and negative free cash flow.

Key Takeaways

  • Alphabet’s market value ended October 29 at $3.46 trillion, down from $3.97 trillion the previous day.
  • Amazon shares also fell in after-hours trading, while its reported $42.4 billion free cash outflow covered 12 months rather than one quarter.

Alphabet shares reach a six-month low

The closing decline followed Alphabet’s latest business update, though the timing alone does not establish what caused the share-price move. The company reported that AI summaries in Google Search affected the number of ads it could sell during the quarter.

Third-quarter revenue rose 25% from a year earlier to $127.6 billion, helped by Google Cloud revenue growth of 103% to nearly $31 billion. Profit fell 25%, while free cash flow was negative by more than $9 billion.

Negative free cash flow means cash generated from operations was insufficient to cover the investments included in that measure. Forrester principal analyst Tracy Woo said the search results highlighted the challenge of funding large AI investments while maintaining established businesses.

Amazon and Microsoft also report

Amazon shares fell 6% in after-hours trading on October 29. In its third-quarter results, the company reported sales of $201.9 billion, up 12% from a year earlier.

Amazon’s results also showed a $42.4 billion free cash outflow over the trailing 12 months. The company said the decrease was driven primarily by increased purchases of property and equipment, largely reflecting AI investments. The outflow figure covers a different period from Alphabet’s quarterly figure.

Amazon Chief Executive Andy Jassy said the company could eventually have two businesses generating $1 trillion in revenue each, without identifying them. That was a possibility he raised, not a reported result.

Microsoft shares fell less than 1% on October 29 after its own update. The company reported quarterly revenue of $92.3 billion, up 19% from a year earlier, and cloud revenue of $63 billion, up 30%.

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