US Stock Market Move | Q3 revenue and profit both fell short of market expectations; Alphabet Inc. Class C (GOOGL.US) opened more than 12% lower.

Thursday, Alphabet Inc. Class C (GOOGL.US) opened sharply lower, and as of press time, its decline exceeded 12%, with more than US$400 billion in market value wiped out, falling back to US$3.5 trillion. On the news front, Alphabet, the parent company of Alphabet Inc. Class C, released its third-quarter 2026 financial report, with both revenue and profit falling short of market expectations, and free cash flow negative for a second consecutive quarter. The strong expansion of the cloud business was unable to mask the weakness in search advertising and the continued deterioration of free cash flow, and market doubts about whether massive AI capital investment can substantive returns suddenly intensified. The third-quarter report showed that Alphabet's total revenue was US$127.58 billion, up 25% year over year, below the analyst average estimate of US$128.22 billion; earnings per share were US$2.12, significantly lagging Wall Street expectations of US$2.99 to US$3.02. JPMorgan cut its target price for Alphabet from US$425 to US$375. Goldman Sachs Group, Inc. also lowered its 12-month target price from US$435 to US$385, a reduction of about 11.5%, but maintained its Buy rating unchanged. Based on Goldman Sachs Group, Inc.'s October 28 closing price of US$324.89, the new target price implies about 18.5% upside.