Alphabet shares had regained just 1.5% by Nov. 9 after a sharp post-earnings selloff, leaving the stock 11.3% below its pre-results close as the quarterly report paired revenue growth with heavy investment plans. Class A shares closed at $288.15 on Nov. 9, compared with $283.82 on Oct. 29 and $324.89 on Oct. 28. The Oct. 29 close followed a 12.6% one-day drop.
Alphabet reported third-quarter revenue of $127.6 billion, up 25% from a year earlier, while Google Cloud revenue rose 103% to $30.7 billion. Net income available to common stockholders was $26.17 billion, down from $34.98 billion a year earlier. The company said an $8.7 billion loss on equity securities reduced net income by $6.7 billion and diluted earnings by 55 cents per share.
The Associated Press, citing FactSet estimates, reported that analysts had expected $127.97 billion in revenue and about $3.01 in earnings per share. Alphabet reported diluted earnings of $2.12 per share for the quarter.
CNBC contributor Julia Spina outlined a Dec. 18, 2026, $285/$300 bull call spread using the Nov. 9 close. CNBC reported an entry debit of about $7.07 per spread, a $292.07 breakeven and a theoretical 47% probability of profit. Its figures put the maximum loss at $707 per spread and the maximum profit at $793 if shares close at or above $300 at expiration. Spina disclosed that she is long the trade.
Alphabet reported negative free cash flow of $9.065 billion for the quarter and forecast 2026 capital spending of $195 billion to $205 billion. Management expects spending to increase significantly in 2027 and said greater use of third-party computing capacity would weigh on Google Cloud margins in the near term. Nvidia has scheduled its fiscal 2027 third-quarter results announcement for 4:20 p.m. ET on Nov. 17, followed by a call at 5 p.m. ET.
