Alphabet valuation tumbles $500bn on post-earnings selloff
Thursday’s selloff followed strong quarterly sales but a sharper profit decline, negative free cash flow, and a capital-outlay plan of up to $205 billion for the year.
Alphabet’s valuation fell by more than $500 billion in one session, with shares down about 13% to a six-month low.
Market capitalisation moved from about $3.97 trillion to about $3.46 trillion by Thursday’s close.
Third-quarter revenue rose 25% to $127.6 billion, yet net profit fell 25% and free cash flow was negative $9.1 billion.
Management guided for capital spending of up to $205 billion this year, more than double the prior year.
Amazon fell about 6% the same day; Microsoft slipped by less than 1%.