Alphabet shares lose 10 percent after missing expectations

Alphabet shares dropped by 10 percent, wiping 396 billion dollars from their market value, due to net income and earnings per share (EPS) missing expectations and the impact of a 9 billion dollar negative cash flow, even though revenues matched expectations.

Alphabet shares lost 10 percent in after-hours trading, partly affected by paper losses on equities. During the same period, Microsoft generated approximately 19 billion dollars in free cash flow, pushing its shares up by 2.9 percent. In Asian markets, Samsung shares fell by 5 percent despite posting record earnings and committing to a shareholder return program of up to 110 trillion won.

Fed Chair Warsh's press conference was interpreted by the markets as a dovish move, while 2-year Treasury yields in New York fell by about 6 basis points. Warsh also announced that one of the eight FOMC meetings next year will focus solely on strategy without a policy decision, and that two meetings will be allocated for strategy in 2028.