From CNBC, October 29:
- Alphabet reported a larger negative free cash flow than analysts had expected while maintaining its spending guidance for the year.
- Microsoft saw free cash flow fall but it remained positive ads its capex came in below expectations
- If Alphabet shares fall more than 9.77% on Thursday, that would be its worst post-earnings reaction ever.
Alphabet shares were sharply down in premarket trading on Thursday while Microsoft rose as investors focused on the tech giants’ latest spending and free cash flow numbers in their third-quarter earnings.
Alphabet was 10% lower in premarket trade while Microsoft was nearly 4% higher.
If Alphabet closes more than 9.77% lower on Thursday, it would be its worst post-earnings reaction ever. The company went public in 2004.
Microsoft reported $45.2 billion in capital expenditures and finance leases during the third quarter, which was 30% higher than a year ago, but below analyst projections of $50.67 billion. Free cash flow fell 27% to $18.63 billion but remained positive.
Alphabet, in contrast, reported negative free cash flow of $9.07 billion for the third quarter, which fell much further than the $2.70 billion analysts expected by analysts. The Google parent maintained its full year capital expenditure guidance of between $195 billion and $205 billion....
...Search under pressure
Alphabet’s biggest source of revenue, search advertising, grew 12% in the September quarter to $63.35 billion, but missed analyst expectations, adding further pressure to the company’s shares....
....MUCH MORE
GOOG is trading down 11.10% at $286.15.
As noted exiting yesterday's GeekWire articles on Microsoft:
The uptick in MSFT is not nearly enough to overcome the whack that GOOG and GOOGL are taking on Alphabet's advertising shortfall. Them being down around 9% each has the Nasdaq 100 futures down about 1%,
