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AI spending doubts stall the tech rally as Alphabet and Samsung disappoint
On Oct. 29, investors sold technology shares after Alphabet reported $2.12 in earnings per share on $127.58 billion in revenue, missing expectations as its $9.1 billion cash outflow sharpened questions about AI return...
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Key takeaways
- On Oct. 29, investors sold technology shares after Alphabet reported $2.12 in earnings per share on $127.58 billion in revenue, missing expectations as its $9.1 billion cash outflow sharpened questions about AI return...
- South Korea’s Kospi closed down 1.24% after a 6.63% jump the previous day; the U.S.
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openai.comCreate a landscape editorial hero image for this Studio Global article: How did doubts about the returns on heavy artificial-intelligence spending derail the technology-stock rally on Thursday, October 29, 2026,. Article summary: The rally faltered because investors focused on whether enormous AI investments were producing profits and cash, rather than simply rewarding rapid cloud growth: Alphabet’s disappointing results and cash outflow brought . Topic tags: general, general web, news. Style: premium digital editorial illustration, source-backed research mood, clean composition, high detail, modern web publication hero. Use reference image context only for broad subject, composition, and topical grounding; do not copy the exact image. Avoid: logos, brand marks, copyrighted characters, real person likenesses, fake screenshots, UI text, readable text, watermarks, charts with fake numbers,
The technology rally stalled on Thursday, Oct. 29, as investors questioned whether heavy artificial-intelligence spending would generate enough profit and cash to justify its cost. Alphabet’s earnings miss made that concern tangible: strong cloud growth could not offset weaker-than-expected results and a large cash outflow. Samsung’s results and shareholder-return disclosures added to the pressure in Asia. 5
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Alphabet put AI returns in focus
Alphabet reported third-quarter earnings of $2.12 per share on $127.58 billion in revenue, below analyst expectations. Google Cloud revenue rose 103%, but that growth did not erase concerns about earnings, search advertising and the financial burden of AI investment. The company’s reported quarterly cash outflow was about $9.1 billion. 4
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Alphabet’s share-price decline varied across market reports and trading snapshots: one described a fall of nearly 12%, while another later reported a 13.7% decline. 2
5 The differing figures are a reminder that intraday and later-session reports do not necessarily show the same return.
South Korea gave back part of its rally
The Kospi closed at 5,937.66, down 1.24%, after rising 6.63% the previous day. Samsung reported record quarterly earnings, but its semiconductor results fell short of market expectations, and investors were disappointed by the lack of specific additional shareholder-return details. 23
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The contrast with the prior session was sharp: SK Hynix’s record results and announced shareholder returns had helped drive the earlier rally. 23
24 Samsung’s weaker reception underscored how investors were weighing both business performance and what companies plan to return to shareholders.
U.S. stocks and after-hours results extended the pressure
U.S. technology shares led the decline. The Nasdaq Composite fell about 1.4%, the S&P 500 slipped about 0.3%, and the Dow also ended lower. Microsoft was a counterpoint in early trading, with reports noting an initially positive reaction to its results. 36
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After the U.S. close, Amazon and Intel shares fell as investors assessed their results and outlooks. Amazon’s sales and guidance disappointed despite strength in its cloud business; Intel dropped sharply after issuing a weaker revenue outlook. One report recorded Intel down 23.32% at 7:09 p.m. Eastern, a time-specific after-hours snapshot rather than a settled closing figure. 36
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What the selloff did—and did not—show
The session reflected a reassessment of the near-term financial payoff from AI investment. Cloud growth remained strong at Alphabet, but investors also scrutinized earnings, cash generation and spending. The evidence supports a market reaction to uncertainty about returns; it does not establish that demand for AI had collapsed. 4
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On Oct. 29, investors sold technology shares after Alphabet reported $2.12 in earnings per share on $127.58 billion in revenue, missing expectations as its $9.1 billion cash outflow sharpened questions about AI return...
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On Oct. 29, investors sold technology shares after Alphabet reported $2.12 in earnings per share on $127.58 billion in revenue, missing expectations as its $9.1 billion cash outflow sharpened questions about AI return... South Korea’s Kospi closed down 1.24% after a 6.63% jump the previous day; the U.S.
Sources
economies.comAlphabet shares plunge nearly 12% as AI spending and slowing search growth overshadow cloud boom
247wallst.comAlphabet Sinks 11% as AI Spending Pushes Cash Flow Negative Again; Microsoft and Meta Edge Higher, Amazon Slips
afp.comStock markets diverge on corporate earnings, tech jitters
tradingkey.comAlphabet Shares Plunge 8% After Hours as Q3 Revenue, Net ...