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Alphabet Stock Is Having a Horrible 7-Day Stretch. These Numbers Tell the Story.

Alphabet stock is on pace for its worst year since 2008.

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Ore Huiying/Bloomberg

Shares of
Alphabet
are on track for their worst losing streak in four years amid a broader tech selloff, and cost and advertising concerns at the parent company of Google.

Alphabet
(ticker: GOOGL) fell 0.6% Monday to $92.27 and has declined seven consecutive days, falling 8.9% during the stretch, according to Dow Jones Market Data. The stock is on track for its longest losing streak since September 2018, when it also fell for seven straight trading days.

What’s the reason for the decline in one of the world’s biggest tech stocks? One issue is the general downtrend in tech. The tech-heavy
Nasdaq Composite
has dropped 29% this year as tech companies face cost pressures, layoffs, and a slowdown in demand.

Alphabet hasn’t been immune to these pressures. According to a report from The Wall Street Journal, Chief Executive Sundar Pichai told employees in July that it would slow the pace of hiring for the rest of the year. Then in November, the company posted disappointing third-quarter results as advertising sales growth slowed.

Advertising revenue has fallen for a wide array of businesses this year as companies have braced for a potential recession.

“The growth in our advertising revenues was also impacted by lapping last year’s elevated growth levels and the challenging macro climate,” Pichai said during Alphabet’s most recent earnings call.

Last month, TCI Fund Management told Alphabet in a letter that it needs to aggressively cut costs. As recently as last week, Alphabet confirmed plans to merge the team working on its Waze mapping service with those on its Maps product in an attempt to do just that.

Layoffs weren’t planned under that reorganization, but that hasn’t been the case for other tech companies, including
Amazon.com
(AMZN), which confirmed that it has begun layoffs this year and will continue to cut employees in 2023, and
Meta Platforms
(META), which said in a letter to employees in November that the company would be cutting around about 13% of its workforce.

Shares of Alphabet have declined about 37% this year, putting them on pace for their worst year since 2008. The company didn’t immediately respond to a request for comment from Barron’s.

Write to Angela Palumbo at angela.palumbo@dowjones.com

Credit: marketwatch.com

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