Alphabet loses $475B as AI spending pushes free cash flow deeper into the red

Alphabet (GOOGL) lost about $475 billion in market value according to its earnings results on October 28. Its third-quarter revenue increased by 25% to $127.6 billion. However, even after a huge AI infrastructure bill, free cash flow slipped into the red. Investors want to know when the spending will pay off. A booming quarter that still burned cash The SEC filing made by Alphabet revealed an increase in operating income of almost 30% to $40.58 billion, while revenue undershot the forecasted amount by analysts of $128.22 billion. Alphabet’s operating cash reached $42.29 billion. But the company spent $51.36 billion investing in property and equipment. This resulted in an excess cash outflow of $9.07 billion, which even exceeded the expected $2.7 billion.

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