Alphabet Stock Drops 10% Despite Google Cloud Revenue Doubling

Alphabet shares fell nearly 10% after its Q3 earnings report, despite Google Cloud achieving 103% revenue growth, signaling investor disappointment with the overall results. The sharp decline contrasts with Microsoft and Oracle, which also reported strong AI-related growth but saw their stocks rise about 4% and 11%, respectively, highlighting divergent market reactions to similar performance. As AI spending increases across the industry, the mixed responses raise the question of how much growth is sufficient to justify rising costs, a key concern for investors evaluating tech valuations.