IT News on October 29th: On October 29th local time, the stock price of Google's parent company, Alphabet, opened with a significant drop, with the decline widening to 13% at one point, and the stock price fell to around $280.

According to Reuters, Alphabet's previously released financial report for the third quarter of 2026 failed to meet market expectations, exacerbating investors' concerns regarding the slowdown in growth of its search advertising business and the continuous rise in AI investment costs.

Alphabet announced its third-quarter financial results after the close of U.S. markets on October 28. The company's revenue for that quarter was $127.6 billion, lower than the market's expectation of $128.2 billion; net profit decreased by 25% to $26.17 billion year-on-year.

At the same time, the company's free cash flow was negative $9.07 billion, while capital expenditures reached $51.4 billion, reflecting its ongoing increase in investment in AI infrastructure and cloud computing sectors.

In terms of business, Google Cloud's revenue in the third quarter more than doubled year-on-year, reaching $30.71 billion, but the search advertising business did not perform as expected. Reuters reported that search advertising revenue was $63.4 billion, which was lower than analysts' forecasts.