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$GOOGL Down 12% two hours after earnings, I added to my position with a small allocation!
Alphabet's Q3 revenue was $127.6 billion, up 25% year over year but slightly below expectations; EPS was just $2.12, weighed down by losses on equity investments.
The highlight was Google Cloud revenue, up 103% year over year; the concern was free cash flow of negative $9.07 billion, with AI capital expenditures set to continue rising.
My view: The long-term thesis for AI + cloud computing + in-house chips remains intact, but returns on investment need to be proven.
I added with a small allocation; my