Alphabet sinks 10% after it misses on ads and burns cash, Microsoft beats to rise 4%

Last updated: October 29, 2026 | 10:57

Dubai: Google parent Alphabet’s shares fell about 10 percent while Microsoft shares rose about 4 percent in extended trading on October 28. Both tech majors showed an increase in cloud revenues, then why did the street give opposite verdicts? Alphabet missed estimates on revenue and earnings and swung to negative free cash flow. Microsoft beat on revenue, earnings and cloud.

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Where did Alphabet falter?

Alphabet reported a Q3 revenue of $127.58 billion which is up 25 percent. Analysts expected the number to come in at $128.22 billion. Adjusted earnings per share reached $2.67 against a $3.02 forecast. This is the first simultaneous miss on both measures in nearly four years. It was the $8.66 billion loss on equity investments that drove the decline

Advertising did most of the damage.…