Samantha Subin / CNBC : Alphabet reports Q3 negative free cash flow of $9.07B, worse than expected, capex of $51.36B, vs. $55.09B est., and keeps its FY capex forecast at $195B-$205B — Alphabet shares slumped more than 10% after the search giant reported a drop in free cash flow during the third quarter …
Alphabet reports Q3 negative free cash flow of $9.07B, worse than expected, capex of $51.36B, vs. $55.09B est., and keeps its FY capex forecast at $195B-$205B (Samantha Subin/CNBC)
In short
Following the announcement of worse-than-expected cash flow, Alphabet shares tumbled by more than 10%. The company reported negative free cash flow of $9.07 billion for the third quarter. Meanwhile, quarterly capital expenditures reached $51.36 billion, trailing analyst estimates of $55.09 billion. Despite this quarterly spending shortfall, Alphabet maintained its full-year capital expenditure forecast of $195 billion to $205 billion.
Key points
- Negative free cash flow results came in significantly worse than market analysts had anti…: Negative free cash flow results came in significantly worse than market analysts had anticipated.
- The company kept its full-year capital expenditure projection steady between $195 billion…: The company kept its full-year capital expenditure projection steady between $195 billion and $205 billion.
- Investor sentiment deteriorated rapidly, driving a double-digit percentage decline in the…: Investor sentiment deteriorated rapidly, driving a double-digit percentage decline in the company's share price.