ARNOLD FRANCES sold $28K of GOOG

Alphabet (GOOGL) was upgraded to 'Strong Buy' after a Q3 selloff, despite concerns over AI monetization and rising costs. Q3 FY2026 showed 25% revenue growth and 30% operating income growth, but Search revenue slowed. GOOGL's AI ecosystem, including Cloud, has a $560.8B backlog, and the stock is valued at 18.9x 2027 EPS consensus.

Alphabet (GOOG) shares dropped 12% post-earnings, losing $550B in market value. Search revenue grew 12% YoY to $63.35B, slowing from prior quarters. The company faces a lawsuit over content use and potential tax changes in Texas. It also launched a $6.7B bond offering and is in talks with the U.S. Defense Department.

Alphabet (GOOG, GOOGL) reported Q3 revenue of $127.6B (+25% YoY) but negative free cash flow of $9.1B due to AI investments. Google Cloud revenue more than doubled. The company has $265.1B in cash and marketable securities. Investors should monitor cloud growth, search ad revenue, and free cash flow.

Alphabet, Oracle, and Meta attempted to raise over $36.7 billion in bonds on Monday. Alphabet and Oracle completed sales totaling $16.7 billion, while Meta's deal is still under discussion. Alphabet sold €6 billion at spreads close to sovereign levels, Oracle priced $10 billion at higher spreads, and Meta aims for at least $20 billion. Oracle also filed to sell $10 billion in common stock. S&P and Moody's rate Alphabet highly, while Oracle is near junk status.

Marvell Technology agreed to buy Lumentum Holdings in an all-stock deal valued at $115B, including debt. Marvell shares fell 12.7% and Lumentum dropped 18.6% on the news. The deal, expected to close by 2028, aims to create an AI connectivity leader, with Marvell shareholders owning about two-thirds of the combined company. Both companies' stocks underperformed the implied deal price, reflecting market doubts about the terms and timing.

Reddit (RDDT) shares fell 29% after Q3 earnings beat expectations but Q4 guidance missed estimates. CEO Steve Huffman cited Google's AI search features as a factor in declining referral traffic, warning of potential double-digit declines in unique visitors. Other internet companies reliant on search traffic, including NYT, NWS, YELP, and EXPE, may also be affected.