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.
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