Alphabet Inc. shares drop 5%, wiping out $200 billion in market cap after missing analyst expectations in Q4 results, particularly in Google Cloud revenue.
Alphabet Inc., the parent company of Google, a global technology conglomerate based in the United States, has seen its shares fall by 5% this week, resulting in a loss of approximately $200 billion in market capitalization. As of February 7, 2024, Alphabet’s market cap stood at $2.35 trillion, down from $2.5 trillion on February 1, 2024, reflecting the significant dip in its stock price.
The drop in Alphabet’s stock value came after the company released its fourth-quarter (Q4) results on February 5. The company’s performance, particularly in the Google Cloud segment, did not meet analysts’ expectations, contributing to the decline in investor confidence. Revenue from Google Cloud was reported at $11.96 billion, below the analyst forecast of $12.17 billion. This miss raised concerns over slower-than-expected growth in the cloud segment, and the company’s large spending structure further upset investors.
Despite the Cloud business falling short of expectations, Alphabet reported a year-over-year revenue growth of 12% for Q4 2024, totaling $96.5 billion. The company also experienced a 28% increase in net income for the quarter compared to the same period in the previous year.
Q4 was a strong quarter driven by our leadership in AI and momentum across the business. We are building, testing, and launching products and models faster than ever, and making significant progress in compute and driving efficiencies.”
Sundar Pichai, Alphabet’s CEO
In the premarket session on February 7, Alphabet shares were trading 0.27% lower at $191.08, compared to the previous market close of $191.60. Despite the short-term dip, Alphabet shares have delivered strong returns for long-term investors, with more than 160% returns over the last five years and over 30% returns in the last year. In 2025, the company’s shares have shown a modest 1.4% increase on a year-to-date basis.
