Google is set for a $400 billion stock wipeout after disappointing earnings
Source: Business Insider ·
Google shares fell 10% in premarket trade. If the fall holds, it will be the biggest negative stock reaction to earnings since it went public in 2004.
From the source
Google CEO Sundar Pichai.Karl Mondon / AFP via Getty ImagesShares in Google's parent company were down 10% in premarket trading on Thursday.While AI is driving more search queries, search revenue disappointed, raising concerns.The drop would be the biggest negative stock reaction to earnings since Google went public in 2004.Alphabet's share price is tumbling on Thursday after it reported that Google's AI search mode isn't making as much as expected in its latest earnings.As of around 7:20 a.m. ET, Alphabet's stock was set to open at $287.92, down 10.5% from Wednesday's close. That drop would equate to a loss of more than $400 billion from the company's market capitalization, which stood at $3.95 trillion on Wednesday.In Wednesday's earnings call, CEO Sundar Pichai said AI helped search queries grow at the fastest year-over-year pace in five years.However, the financials are lagging behind.Google's parent company, Alphabet, reported third-quarter search revenue of $63 billion, below…