Alphabet Plummets Most Since 2020 After Cloud Earnings Shortfall
- Overall third-quarter revenue beat analysts’ estimates
- Investors look to cloud business to drive company growth
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Alphabet Inc. shares tumbled 9.5%, the most since March 2020, after the Google parent reported a smaller than expected profit in cloud computing, raising concerns about its position in a market critical to its future.
As Google’s dominant search business matures, investors are looking to the cloud unit to take the lead on growth. The unit reported operating income of $266 million, missing estimates of $434 million.