Alphabet's Google Cloud revenue doubles to $31 billion as cash flow stays deep red
Alphabet’s Google Cloud more than doubled its revenue to $30.7 billion in the third quarter, helping to soften some of the more tepid growth from Google Search and YouTube. But for investors, it wasn’t enough.
TL;DR
- Google Cloud's revenue doubled to $30.7 billion in Q3.
- Alphabet's stock dropped over 11% after Q3 results, wiping out over $280 billion in market value.
- Google Search revenue grew 12% to $63.4 billion, a slowdown from previous quarters.
- Analysts expressed concern that AI might cannibalize Google's search business.
- Alphabet's total Q3 revenue was $127.6 billion, up 25% year-over-year.
- Earnings per share tumbled to $2.12 due to an $8.7 billion paper loss on equity investments.
- Capital expenditures increased significantly to $51.4 billion in Q3, with forecasts for substantial future spending on AI.
- Free cash flow was negative, reaching -$9.1 billion in Q3.
- Google Cloud's profit margin widened to 36.2%.