Alphabet's Cloud Unit Disappoints, Shares Fall

Alphabet Inc.'s cloud computing unit reported lower-than-expected profits, causing concerns about the company's position in the competitive cloud market. Google Cloud's operating income of $266 million fell short of estimates, highlighting the gap between Google and its rivals, Amazon and Microsoft. The unit's momentum in attracting AI startups also fell short in the most recent quarter. Despite this, Alphabet's overall third-quarter sales exceeded expectations, with net income of $1.55 per share. The company's shares fell 6.5% in premarket trading.