Alphabet shares were sharply down in premarket trading on Thursday while Microsoft rose as investors focused on the tech giants' latest spending and free cash flow numbers in their third-quarter earnings.
Alphabet was 10% lower in premarket trade while Microsoft was nearly 4% higher.
If Alphabet closes more than 9.77% lower on Thursday, it would be its worst post-earnings reaction ever. The company went public in 2004.
Microsoft reported $45.2 billion in capital expenditures and finance leases during the third quarter, which was 30% higher than a year ago, but below analyst projections of $50.67 billion. Free cash flow fell 27% to $18.63 billion but remained positive.
Alphabet, in contrast, reported negative free cash flow of $9.07 billion for the third quarter, which fell much further than the $2.70 billion analysts expected by analysts. The Google parent maintained its full year capital expenditure guidance of between $195 billion and $205 billion.