Alphabet’s stock suffers worst daily selloff in more than three years
The selloff in Alphabet Inc. shares Wednesday resulted in the fifth-largest one-day decline in market value for any U.S. company on record.
Alphabet’s stock GOOG, -9.60% GOOGL, -9.51% fell 9.5% in Wednesday’s action, wiping out $166.64 billion in market value for the Google parent company, according to Dow Jones Market Data. The decline in market cap is the largest one-day loss for Alphabet on record, though Meta Platforms Inc. META, -4.17%, Amazon.com Inc. AMZN, -5.58%, Apple Inc. AAPL, -1.35% and Microsoft Corp. MSFT, +3.07% all suffered worse losses in the past.
The company’s daily drop in valuation is more than the entire market capitalizations of each of Nike Inc. NKE, -1.56%, Advanced Micro Devices Inc. AMD, -5.52% and Walt Disney Co. DIS, -2.39%
The 9.5% fall in Alphabet Class A shares Wednesday made for their worst single-day percentage decline since March 16, 2020, when they shed 11.6%.
Read: Google earnings just crushed two big bullish hopes for Alphabet’s stock
The decline also marked the worst post-earnings one-day percentage decline for the Class A shares since July 18, 2008, when they dropped 9.8%, according to Dow Jones Market Data.
Alphabet late Tuesday beat overall revenue and earnings expectations, though the cloud-computing business underwhelmed and analysts left feeling less upbeat about the company’s margin potential going forward.
“Expectations were high heading into GOOG results, and while the top-line delivered in the most important areas, we wouldn’t be surprised if investors rotate a bit into other mega cap tech names near-term,” Barclays analyst Ross Sandler wrote following Tuesday afternoon’s earnings report.