GOOG Analysis

Japanese and South Korean stock markets diverged, as the Nikkei tracked gains in US equities to open higher, while the KOSPI tumbled 2.4%. Kioxia plummeted 8%, and SK Hynix and SoftBank dropped 6%.

Google (GOOGL)(GOOG) shares plunged over 13% in early trading following the release of its third-quarter earnings report, marking the company's worst post-earnings stock performance on record. Search revenue fell short of expectations and capital expenditures are set to increase substantially next year, prompting investors to reassess the balance between AI investment and profitability returns.

Alphabet's financial results missed expectations, causing its stock price to plunge 10% and setting up a critical make-or-break battle to defend the $270 level on the technical front.

On October 28, Google parent company Alphabet (GOOGL) (GOOG) reported its third-quarter 2026 financial results, with Google Cloud revenue doubling to drive a 25% increase in group revenue and a 30% rise in operating profit. However, total revenue fell slightly short of market expectations, losses on securities investments dragged down net profit, and expanding capital expenditures led to a second consecutive quarter of negative free cash flow.

TradingKey - Shares of Google parent company Alphabet (GOOGL) rose over 1% in pre-market trading. The market is focusing on news that OpenAI may purchase Google's AI chips while also awaiting Alphabet's upcoming third-quarter earnings report.

Ahead of its earnings release, Google (GOOGL) unveiled Genie 4, its next-generation AI world model, which allows users to create and modify explorable virtual environments via text prompts and, for the first time, generates synchronized audio and visuals. As this technology is slated to open to paid subscribers and developers, market focus is expanding from what the model can generate to the commercial opportunities it could bring to Google.

Alphabet's stock price has fallen for five consecutive sessions ahead of its earnings report, and disappointing results could extend the decline by up to 15%.

TradingKey - Google parent company Alphabet (GOOGL) will report its third-quarter 2026 financial results after the market close on October 28, Eastern Time, but its stock price remains under pressure ahead of the release. GOOGL last closed at $320.21, falling to a near three-month low, not only breaching the $330 level but also breaking below both its 20-day and 60-day moving averages.

TradingKey - Alphabet (GOOGL) will report its third-quarter 2026 earnings after the U.S. market close on October 28. As demand for AI infrastructure continues to grow, Google Cloud is becoming a new growth engine for the company, but capital expenditures driven by data centers, servers, and custom chips are also climbing rapidly.

On October 13, Google expanded access to Gemini 4 Argon, making the model available to developers, enterprises, and select paid users via its API, the Gemini app, and Search AI Mode. With application scenarios covering specialized tasks such as coding, finance, and legal affairs, the move further broadens the commercialization channels for Google's AI technology.