Google dropped after hours. Right after earnings, it fell roughly 7% to over 10%. Man, that’s insane. Cloud revenue doubled year-over-year to $30.7 billion, up 103%, closing in fast on Azure. Operating profit rose 30%, with Cloud profitability hitting 36%. The numbers look solid on the surface, but EPS missed expectations badly. EPS came in at $2.12, below the expected $3+. This is the first time in four years that both revenue and profit missed estimates. Looking at the reasons for the sell-off: Advertising weakened. Search fell short, with ad revenue down about $1.4 billion. Search ads are Google’s core revenue driver—any hiccup here and the market won’t buy it. Also, unrealized losses on equity investments totaled around $8.7 billion. The company’s footnote noted: net income reduced by $6.7 billion, and EPS diluted by roughly $0.55. Last year, this segment was profitable; this year, it crushed results. The most painful blow? Free cash flow turned negative by about $9.1 billion this quarter—the second consecutive quarter. Capital expenditures hit $51.4 billion, with full-year spending projected at $195–205 billion. The CFO even said they’ll ramp up further through 2027. The market isn’t panicking because AI lacks a story—it’s worried about how much cash will be left after all the spending. Buy U.S. stocks? Follow @MSX_CN