GoKawiilAlphabet shares head for record post-earnings drop after Search revenue misses twice
Alphabet stock fell more than 10% in premarket trading after the company posted its first simultaneous EPS and revenue miss since late 2022, driven by Search revenue falling short of forecasts for a second consecutive quarter. Google Cloud revenue more than doubled, with the CFO calling its TPU systems a 'meaningful contributor,' but that growth wasn't enough to offset investor worry over Search. Microsoft, by contrast, rose in premarket trading as Azure grew 48% to become its largest business, even as a lighter capex figure weighed on cloud-infrastructure stocks.
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Analyst Gil Luria of D.A. Davidson suggested the results may confirm long-standing fears that AI chatbots and agents are beginning to erode Google's core Search business, which funds much of Alphabet's AI spending. If Search's high-margin revenue keeps slipping, Alphabet could face pressure to justify its heavy AI infrastructure investments without the same financial cushion. The divergence between Alphabet's slump and Microsoft's gains suggests investors are drawing sharper distinctions between AI winners and losers ahead of Amazon's earnings later today.
- Alphabet shares fell over 10% premarket, on track for a potential record post-earnings loss.
- Google Search missed revenue forecasts for a second straight quarter amid fears AI tools are diverting search traffic.
- Microsoft rose after Azure grew 48%, even as softer capex guidance hit neocloud stocks.
Source: cnbc.com — Leonie Kidd, 2026-10-29
Published there as: “Alphabet drags on Nasdaq futures as the stock faces a record post-earnings loss”
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