technology ·
$510B wiped from Google parent company Alphabet in stock market rout
30 (UPI) -- The value of Alphabet, the parent company of Google, plunged by $510 billion amid a sell-off of the firm's stock after it reported weaker-than-expected earnings in the July to September quarter and slowing growth of its advertising and search businesses.
The shares ended Thursday down 12.6% after the firm sent shockwaves through the market by reporting lower than expected revenue from weak advertising sales, which it admitted were being impacted by its default "AI search mode," as well as AI investment of more than $50 billion that meant it spent $9.1 billion more than it brought in. Thursday's sell-off, which saw the Nasdaq-listed firm's total market capitalization fall to $3.46 trillion, down from $3.97 trillion on Wednesday, was the worst one-day performance in the company's history and the second worst ever of the U.S. market after chipmaker Nvidia, which saw $589 million erased from its value in a Jan. The Alphabet news helped wipe 1.4% from the Nasdaq Composite Index, which ended the day at 26,184.72 points, and depressed the S&P 500 and Dow Jones Industrial Average to a lesser extent, while similarly gloomy results from Amazon and Intel after the close saw investors pivot into U.S.
