Alphabet (GOOGLE) Loses $215 Billion in Market Value This Month

 

Alphabet (GOOGLE) Loses $215 Billion in Market Value This Month



Alphabet (GOOGLE) Loses $215 Billion in Market Value This Month


Alphabet, the company that owns Google, has lost $215 billion in market value this month as investors are concerned about the company’s ability to generate sustainable growth going forward. But Alphabet is far from alone, with other tech giants like Facebook, Amazon, and Apple all experiencing significant declines in share price since January 3rd. While there’s no sign of Alphabet’s growth slowing any time soon, it’s clear that investors are asking tough questions about how these companies will continue to increase their sales and profitability in the future.


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Alphabet's Struggles

Alphabet (or Google) is a gigantic company. In fact, its market cap of nearly $800 billion makes it one of America's most valuable companies, just behind Apple and Amazon. However, lately Alphabet has not been performing as well as Wall Street would like. Part of that problem is Alphabet's own doing—ad dollars aren't rolling in quite as quickly as they were last year and analysts are not certain how much that will change. However, Alphabet's main challenge right now comes from issues outside its control: an increasing amount of people are looking at their phones rather than at laptops when searching for information. At least for now, that means less ad money for Alphabet to play with.


What To Do If You Own GOOGLE Stock

GOOGL stock has been hit hard over these past few weeks, dropping from nearly $890 per share to just under $785 at its lowest point. However, Google’s parent company Alphabet (the new name for Google) isn’t dead yet—in fact, it’s still a fantastic investment. The company is sitting on a whopping ~$80 billion cash reserve and has some of the best artificial intelligence researchers on staff working towards its next breakthrough. Don’t get me wrong: Alphabet is going through some growing pains right now, but it won’t be long before you see another major rebound. If you own shares of Alphabet, don’t panic! Just sit tight until things start looking up again.


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Can Alphabet Still Beat Facebook?

Alphabet’s stock price has skyrocketed over recent years, but it might be ready to come back down to earth. Alphabet’s stock price reached an all-time high of $1,122 per share on January 30th, but that was before Facebook announced its new video advertising platform. Since then, Alphabet has lost nearly 11% of its market value. It currently sits at just under $1,065 per share. Alphabet is still worth more than twice as much as Facebook, which makes Alphabet one of the most valuable companies in history. But can Alphabet continue to beat Facebook? If you ask me, there are two reasons why Alphabet will continue to grow faster than Facebook: Google and YouTube.


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