Alphabet Missed Its Q3 Estimates, and I Couldn't Care Less

Alphabet missed Q3 earnings and revenue estimates, with per-share profits falling 26% year-over-year and free cash flow turning negative due to massive AI infrastructure spending ($51.4B capex). However, the author argues the market is overreacting, highlighting strong fundamentals: Google Cloud revenue doubled to $30.7B, operating income grew 30%, and the company's backlog reached $567.7B (mostly AI-related). The author believes temporary headwinds and equity valuation changes are masking the company's underlying strength.