$110 billion set to be wiped off Alphabet's valuation after Google owner's advertising revenues disappoint
Jan 31, 2024 - markets.businessinsider.com
Alphabet's shares fell nearly 6% in premarket trading following the release of its Q4 2023 earnings report. Despite profits and total revenue exceeding expectations, advertising revenues fell slightly short of Wall Street's forecast, causing concern among investors. The disappointing ad revenue performance is expected to erase about $110 billion from Alphabet's market capitalization.
CEO Sundar Pichai highlighted the company's AI efforts and the growth in its Google Cloud division. However, with advertising accounting for 80% of Alphabet's total income, the weaker-than-expected growth in this area has spooked shareholders. Despite the drop, Alphabet's stock is still up more than 50% over the past 12 months.
Key takeaways:
Alphabet shares fell nearly 6% in premarket trading following a disappointing earnings report that showed advertising revenues falling short of expectations.
The company's losses are set to wipe about $110 billion off its market capitalization.
Despite the losses, Alphabet's Google Cloud division saw a 26% increase in revenues year-on-year, exceeding expectations.
Alphabet's stock is still up more than 50% over the past 12 months, despite the recent dip.
