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Wednesday, Sep 18, 2019

Amazon and Alphabet’s $82 billion rout echoes Facebook loss

Its biggest one-day market-cap drop ever, and one of the five biggest for any U.S. stock. Google-parent Alphabet’s 1.8 percent decline cut its market capitalization by almost $16 billion.

world Updated: Oct 27, 2018 11:19 IST
Ryan Vlastelica
Ryan Vlastelica
Bloomberg
Amazon fell 7.8 percent on Friday, erasing about $66 billion in market value.
Amazon fell 7.8 percent on Friday, erasing about $66 billion in market value.(AFP File Photo)
         

Amazon.com Inc. and Alphabet Inc. tumbled in the wake of disappointing revenue growth, and it cost investors big money.

The losses wiped out $82 billion in stock-market value, a milestone that brings back memories of Facebook Inc.’s second-quarter debacle. Amazon fell 7.8 percent on Friday, erasing about $66 billion in market value. It was its biggest one-day market-cap drop ever, and one of the five biggest for any US stock. Google-parent Alphabet’s 1.8 percent decline cut its market capitalization by almost $16 billion.

While Friday’s losses reaffirm Amazon’s and Alphabet’s membership in the dubious history book of market-cap collapses, they’re nowhere near taking the individual title. That record belongs to Facebook, which in July became the first U.S. stock in history to shed $100 billion in value in a single session after reporting disappointing quarterly sales and user growth. The stock sank 19 percent over the course of a single trading session, carving about $120 billion off its value.

Amazon’s market cap was $803.3 billion as of Friday’s close. Microsoft Corp. ($821 billion) reclaimed the title of world’s second most valuable company, behind Apple Inc. ($1.04 trillion). Fourth-ranked Alphabet now has a value of $749.1 billion.

First Published: Oct 27, 2018 10:44 IST