Alphabet Shares Fall 10% as Search Slows and Cash Deficit Widens

Alphabet shares fell about 10% in after-hours trading after its third-quarter results paired slower Search revenue growth and a wider free-cash-flow deficit with a more than doubling of Google Cloud revenue. Alphabet posted $127.6 billion in revenue, up 25% from a year earlier but below the $128.2 billion estimate. Google Cloud revenue climbed 103% to $30.709 billion, and its operating profit reached $11.121 billion, about 3.1 times the year-earlier figure. Its operating margin rose to 36.2% from 23.7%. Operating cash flow of $42.29 billion was lower than $51.355 billion in capital spending, leaving free cash flow at negative $9.07 billion.

Source: TokenPost