Alphabet Shares Plunge 13%, Wiping Out $490 Billion in Market Value
Summary
- Alphabet shares fell about 13%, wiping out roughly $490 billion in market value.
- Third-quarter revenue missed market expectations, and slowing growth in the search advertising market weighed on investor sentiment.
- Third-quarter free cash flow (FCF) deteriorated to negative $9.065 billion, while a 114% surge in capital expenditures contributed to the wider deficit.
Forecast Trend Report by Period
Alphabet, Google's parent company, saw its shares tumble.
According to TradingView data on October 29, Alphabet was trading around $280 in early U.S. market action, down about 13% from the previous session. The sharp drop erased about $490 billion in market capitalization.
The selloff followed Alphabet's third-quarter results released a day earlier, on October 28. Revenue came in at $127.6 billion, below market expectations of $128.2 billion, as growth in Google's core search advertising business slowed. That weighed on investor sentiment.
Alphabet's free cash flow for the third quarter was negative $9.065 billion, with the deficit widening 55% from the previous quarter. Operating cash flow fell 13% from a year earlier to $42.29 billion, while capital expenditures surged 114% to $51.355 billion.
JOON HYOUNG LEE
gilson@bloomingbit.ioCrypto Journalist based in Seoul