Earnings disappointments tend to bring not only stock selling but also longer-term doubts about a stock. And investors learned from Alphabet's (NASDAQ: GOOGL) (NASDAQ: GOOG) recent third-quarter earnings report that even mega caps are not immune from such negative sentiment.

Nonetheless, doubts about stocks like Alphabet should serve as a reminder to look at a company more closely. Do the concerns about Alphabet mean investors should close positions or buy shares at the new, lower price? 

Admittedly, this earnings report is one both shareholders and the company will want to forget. Third-quarter revenue of $69.1 billion fell slightly short of the $70.6 billion forecast by analysts. Also, the $13.9 billion net income, or $1.06 per share, came in well below the $1.25 per share consensus.

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Source Fool.com