Alphabet's Free Cash Flow Turns Negative, Shares Plummet 10%

Alphabet, the parent company of Google, experienced a significant 10% drop in its share price following its third-quarter earnings report. The company not only missed Wall Street's expectations but also reported a negative free cash flow for the quarter, a situation mirrored by Meta. This marks the first instance in four years that Alphabet's financial results have failed to meet projections.

While Alphabet faced challenges, Microsoft reported better-than-expected performance in its first fiscal quarter of 2027. The tech giant saw a substantial 48% increase in its Azure cloud infrastructure business, contributing to a positive outlook. Microsoft anticipates Q2 revenue between $96 billion and $97.1 billion, exceeding analyst estimates.

The US Federal Reserve maintained its status quo on interest rates, keeping them unchanged at 3.75% to 4%. Despite this, two dissenters were noted, differing from the previous unanimous decision. The FOMC indicated a wait-and-see approach before determining future policy paths. Upcoming economic data includes Q3 GDP estimates, initial jobless claims, and PCE inflation figures.