Alphabet (GOOGL) Stock Falls 7% as Free Cash Flow Turns Negative for First Time
TLDR
- Alphabet stock fell 7% on Thursday after reporting its first-ever negative free cash flow of -$5.9 billion in Q2.
- The company raised its 2026 AI capital spending forecast by $15 billion to between $195 billion and $205 billion.
- Q2 revenue grew 24% to $119.8 billion, with Google Cloud surging 82% to $24.8 billion.
- Alphabet raised $85 billion in debt and equity in June to fund its 2026–2027 AI spending plans.
- Wall Street is split — some analysts see the dip as a buying opportunity, others are warning on hyperscaler risk.
Alphabet posted a blowout second quarter — then the stock dropped 7%. That’s the story of Thursday on Wall Street.
GOOGL fell as low as $314.91, hitting $316.99 by mid-morning, on pace for its largest single-day market cap loss on record, according to Dow Jones Market Data. It was the worst performer in the Dow Jones Industrial Average on the day.
The results themselves were hard to argue with. Revenue came in at $119.8 billion, up 24% year over year. Google Cloud jumped 82% to $24.8 billion. Operating margins in Cloud nearly doubled to 35.6%. Search revenue rose 17%. Alphabet beat estimates across the board.
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