Alphabet falls 10% premarket on negative free cash flow

Alphabet reported negative free cash flow of $9.07 billion for the third quarter, far worse than the $2.70 billion analysts expected, while keeping full-year capex guidance at $195–205 billion. Shares fell 10% premarket, on course for the worst post-earnings reaction in its history. Microsoft, by contrast, posted $45.2 billion in capex and positive free cash flow of $18.63 billion, and its shares rose nearly 4%.

• Alphabet free cash flow: -$9.07B vs. -$2.70B expected
• Alphabet keeps full-year capex guidance at $195–205B
• Microsoft capex $45.2B, below $50.67B estimate
• A drop over 9.77% would be Alphabet's worst post-earnings move ever