Alphabet Shares Drop Nearly 10% After Q3 Revenue and Earnings Miss Expectations

Alphabet shares tumbled nearly 10% following third-quarter financial results that missed analyst forecasts on revenue and earnings. Diluted earnings per share fell 26% year-over-year to $2.12, below consensus estimates of $3.02, while revenue reached $127.58 billion against expected $128.20 billion. Performance was weighed down by an $8.664 billion unrealized loss on equity securities, primarily from SpaceX, which erased $0.55 per share. Losses in the Other Bets segment also widened to $2.04 billion from $1.42 billion a year earlier, alongside $51.355 billion in capital expenditures that pushed quarterly free cash flow to negative $9.065 billion.