Nasdaq 100 futures fell 1.09% (-326 points) to 29,487.20 on Thursday morning, after Alphabet shares plunged nearly 9.9% in after-hours trading to $290.11 following disappointing third-quarter results. The contracts had risen 0.78% on Wednesday evening before the earnings report. In contrast, Dow Jones futures rose 0.48%, Russell 2000 futures gained about 0.49%, and S&P 500 futures fell 0.25%.
What were the results from Alphabet?
According to a statement from the company (8-K) and CNBC:
Revenue: $127.58 billion (+25%) compared to the expected $127.9 to $128.2 billion. This is the first disappointment in both revenue and profit in nearly four years.
Earnings per share: $2.12, compared to an expected $3.02. This includes an $8.66 billion loss on company-owned shares (following a significant gain from the same shares in the second quarter). Excluding this loss, LSEG estimated earnings per share at $2.67.
Google Cloud: $30.71 billion (+103%), operating profit $11.1 billion, and backlog of orders $561 billion.
Research: $63.35 billion (+12%) versus approximately $64.9 billion expected.
Capital expenditure: $51.36 billion, compared to approximately $55 billion expected, and free cash flow is negative $9.07 billion. The company maintains its 2026 guidance at $195 billion to $205 billion and anticipates a significant increase in 2027.
The stock: closed at 321.89 (+1.6%) then fell by about 9.9% after the close, and the market option was priced at ±6%.
Microsoft's results were the opposite: its stock rose 4.34% after the close, with Azure growing 48% and capital spending lower than expected.
Wall Street futures contracts (9:44 AM Saudi time)
Nasdaq 100: 29,487.20 (-1.09%), with a range of 29,327.70 to 29,634.50.
S&P 500: 7,724.70 (-0.25%).
Dow Jones: 52,730.60 (+0.48%).
Russell 2000: 2,844.30 (+0.49%).
Fear Index VIX (November): 18.83 (+0.16%).
That is, money is not leaving all stocks: technology stocks are falling while small and industrial stocks are rising, and it is a rotation between sectors.
What should I check before 4:30 PM?
Fair value: Alphabet's price was $331.63 before the results. Has it changed? And how far is it from that price now?
Analyst targets: The consensus was a strong buy with a target price of 422.36 before the results. Adjustments will be released before the market opens, so see who reduced their target and who maintained it.
WarrenAI: Ask him: How did Alphabet's valuation change after the third quarter results? What are the recurring and non-recurring earnings? And what impact did the Nasdaq decline have on the tech stocks in my portfolio?
Alerts: Activate an alert on your stock instead of monitoring the screen after the opening.
