The Motley Fool
02 Nov 2026, 09:15 UTC · 1d ago
Alphabet Missed Its Q3 Estimates, and I Couldn't Care Less
Impact · against what's priced in
The Q3 earnings miss and negative free cash flow are largely non-events for the stock price, as the market had already discounted the surge in AI capex and the potential for negative cash flow. While Search advertising growth decelerated, the massive Cloud growth confirms the trajectory the market is tracking, though it doesn't yet trigger the valuation re-rating reserved for sustained high-margin AI returns.
- GOOGL−0.10
Already priced in
- The price assumes
Search advertising revenue growing near the current 13.4% pace
Search advertising revenue grew 12%, a slight deceleration from the 13.4% baseline the price assumes, though it remains near that pace.
What GOOGL's price assumes · Sep 2
