This is it Main reason for GOOG crash was a large non operating investment loss plus heavy AI cash burn and softer core search and ads growth. Alphabet’s operating income rose about 30 percent year over year to roughly 40.6 billion dollars with margins expanding. The drop in pretax and net income of about 25 percent and the fall in EPS of about 26 percent to 2.12 dollars from 2.87 dollars came mainly from other income and expense swinging to a loss of about 8.2 billion dollars. That was driven by an unrealized loss of roughly 8.7 billion dollars on equity securities, primarily the SpaceX SPCX stake. That alone cut EPS by about 0.55 dollars. Revenue came in at 127.6 billion dollars versus roughly 128.2 billion dollars expected. Search advertising grew only about 12 percent and missed estimates, with AI Mode cited for lower monetization. Free cash flow was negative 9.1 billion dollars, worse than expected near break even, from heavy AI capital spending of about 51 billion dollars in the quarter plus TPU inventory build. The 2026 capex guide stayed at 195 to 205 billion dollars with more expected in 2027. Google Cloud was the bright spot as revenue more than doubled, up 103 percent year over year, and beat estimates. Investors focused on the cash burn from AI spending, the search slowdown, and the rare top and bottom line miss. The pretax and net income decline was mostly non operational.