Google Stock (GOOG) Crashes 13% as an $8.7 Billion Loss on…
By Tobi Opeyemi Amure
AI summary of the source article
Alphabet shares fell 13.18% following third-quarter earnings that missed expectations due to an $8.66 billion net loss on equity securities tied to SpaceX. Increased capital expenditures of $51.36 billion also drove free cash flow to negative $9.07 billion.
Why it matters
The earnings miss is a mark-to-market loss on a listed holding, so Google stock fell on a line that reverses if SpaceX shares recover.
Key facts
- Alphabet posted Q3 diluted earnings of $2.12 per share, hit by an $8.66 billion net loss on equity securities primarily from an unrealized SpaceX loss.
- Capital expenditure reached $51.36 billion in the quarter, causing free cash flow to drop to negative $9.07 billion.
- Google Cloud revenue increased 103% to $30.71 billion, with backlog reaching $561 billion.
Source excerpt · FinanceFeeds
Google stock (GOOG) fell 13.18% to $279.47 within minutes of Thursday’s open, a drop of $42.42 a share that strips roughly $522 billion from a market value now at $3.44 trillion. The fall came the morning after Alphabet reported third-quarter revenue of $127.58 billion, up 25%, and cloud revenue of $30.71 billion, up 103%. Neither of those growth rates is what the market traded on Thursday morning…