Alphabet Shares Projected to Drop 11% After Poor Earnings

Alphabet Inc. shares are projected to open 11% lower on Thursday after the company reported second-quarter earnings, revenue, and capital expenditure that missed market expectations. The company reported negative free cash flow of $9.07 billion, extending a continuing pattern of negative cash flow.

Market analysts indicate that traders are selling off the stock to preserve remaining profits. Steve Grasso, CEO of Grasso Global, noted that moving averages have converged, suggesting many investors share a similar cost basis and are attempting to exit their positions simultaneously. Grasso stated that investors now view Apple Inc. as a safety stock over Alphabet.