Alphabet Sinks, DoorDash Rises, Caterpillar Slumps as Modest Beat Fails to Soothe AI Jitters
Donnerstag, 29. Oktober 2026 · 3 min
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Shownotes
On this episode of Stock Movers:
- Alphabet (GOOGL) shares sink. The Google parent reported sales of $111.2 billion for the third quarter, falling short of analysts' projections, with ad sales from search and other channels growing at the slowest pace in five quarters. The company's future commitments to buy resources such as computing power and energy totaled $924 billion, with upcoming obligations bringing the company's total future obligations to well over $1 trillion.
- DoorDash Inc. agreed to buy rival Instacart in a deal that values the company at about $17 billion. DoorDash will pay $65 a share in cash and stock, and plans to use cash on hand and debt from JPMorgan Chase & Co. to finance the purchase. The deal is expected to close toward the end of 2027 or in the first half of 2028, at which point DoorDash plans to keep Instacart’s brand, enterprise technology products and app.
- Caterpillar (CAT) shares slump. The company posted earnings that only modestly beat expectations, adding to investor jitters about mounting challenges to the AI infrastructure boom. The company reported adjusted earnings of $7.20 a share in the third quarter, and overall revenue was $20.68 billion, just above the $20.65 billion consensus.
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Bloomberg Audio Studios, podcasts, radio, news. The Stock Movers Report, your roundup of companies making moves in the stock market, harnessing the power of Bloomberg data. Let's take a look at some of the stocks on the move today. We can do that with Tatiana Daria, strategist for MarketsLive, joining us live here in our studio. Tatiana, what are you looking at today?
Well, Charlie said it, Alphabet bears repeating a huge move there, down 12% on track for its largest drop ever if this moves hold into the close. A true miss here on earnings, guys. Top line and bottom line both missed, which is very rare for Google to see. The softness is coming from search, not cloud, which is reassuring on the AI side of the business, but at the same time is raising concerns of whether it is cannibalizing Google's core businesses, search and ads. Apparently, the popularity of AI mode, which is a new tab on Google search, is taking a toll. Cash flows were also more negative than the prior quarter. And executives have explained that it's because of a build for their chip business, the TPUs. So that
was a silver lining. Nonetheless, a pretty unforgiving reaction here in this talk. Yeah, it's pretty remarkable to look at that.
Biggest one-day move ever, at least on an intraday basis.
What's next on your list? Caterpillar also moved to the downside, down 7%, was down as much as 11% earlier. Analysts say it failed to meet a high bar set by the street and many investors heading into this print revenue slightly ahead of expectations today. But that was not enough for analysts. The company also forecasted forecast moderate sales and revenue growth and its backlog of 78 billion dollars. A key measure that Wall Street is watching is likely below the highest estimate out there of about 80 percent. According to JP Morgan. So overall here, the street saying this was not or a beat and reassure beat and retread was not enough for investors and shares are responding accordingly.
One more. Well, DoorDash, a little bit of good news here. Up 7%, the company agreed to buy rival Instacart in a deal that is valued at about $ 17 billion. It's expected to close towards the end of next year or in the first half of 2028. For DoorDash, which is already leading a restaurant delivery app in the U.S., this gives them or it boosts their grocery delivery segment, which the CEO has said it's one of the fastest growing segments.
parts of the business. So that puts them in sort of better position to compete against those retail giants, Walmart, Amazon. And shares here really could use some momentum. It's down 20% here today, today up 700.
The Stock Movers Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market-moving headlines, listen to Bloomberg Radio Live. Catch us on YouTube, Bloomberg.com, and on Apple CarPlay and Android Auto with the Bloomberg Business app.
