Alphabet Inc (NASDAQ:GOOGL) stock is down 11.4% to trade at $287.78 this morning, after the tech titan reported adjusted third-quarter earnings of $2.12 on $63.4 billion in revenue, both of which fell short of estimates. Negative free cash flow of $9.07 billion and core search revenue falling short of expectations are also alarming investors.
GOOGL is heading for its worst single-session drop ever. The shares are now below their year-to-date breakeven level, and are heading for their lowest close since April.
Keep an eye on the stock's 14-Day Relative Strength Index (RSI), last seen at 22, firmly in "oversold" territory.
So far, 12 brokerages have issued price-target cuts, the worst coming from Melius Research to $325 from $395. More bear notes could be on the way, considering 49 of 53 brokerages rate Alphabet a "buy" or better with zero "sells" on the books, while the consensus 12-month price target of $409.98 is a 42% premium from last night's closing perch at $324.89.
Options traders are piling on. The weekly 10/30 280-strike put is the most popular contract, while the 270-strike call in the same weekly series is also seeing increased activity.
