Why Alphabet Stock Fell 17% in February

From Nasdaq: 2025-03-06 09:47:30

Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) suffered a 17% stock drop in February due to weaker-than-expected revenue and global economic concerns, losing over $300 billion in market value. The company’s Q4 revenue of $96.47 billion fell short of estimates, showing slower growth compared to Meta Platforms. Alphabet plans to increase capital expenditures to $75 billion by 2025 for AI infrastructure. Tech stocks, including Alphabet, faced sell-offs due to macro and sector issues. Google’s cloud division announced job cuts, potentially impacting profits and growth.

As the leader in digital advertising, Alphabet remains sensitive to global economic conditions. Concerns over competition in AI and search may affect the stock price, despite a low price-to-earnings ratio of 21.5. Investors should monitor macro news for stock movements, but if Alphabet maintains its growth rate, the stock could see future gains.

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Important figures: Alphabet’s Q4 revenue: $96.47 billion, 12% growth. Earnings per share: rose from $1.64 to $2.15. Capital expenditures to increase to $75 billion by 2025. Alphabet’s stock price fell by 17% in February, erasing over $300 billion in market value. Tech sector sell-offs due to macro and sector issues impacted Alphabet’s stock performance.



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