Alphabet stock analysis: As a result of a general selloff in the technology sector and concerns regarding costs and advertising at the parent company of Google, shares of Alphabet are on course for their worst losing streak in four years.
According to Dow Jones Market Data, Alphabet (NASDAQ:GOOGL) lost 0.6% on Monday, bringing its price down to $92.27. Over the past seven trading days, the company’s share price has dropped 8.9%. The stock had dropped for seven consecutive trading days in a row, putting it on course to have its longest losing streak since September 2018, when it also plummeted for seven straight trading days.
What may be behind the recent drop in the value of one of the most critical technology stocks in the world? One of the problems is the ongoing downward trend in technology. The Nasdaq Composite, heavily weighted toward technology stocks, has experienced a decline of 29% this year because technology businesses are dealing with cost pressures, layoffs, and a slowdown in demand.
Alphabet has yet to escape the effects of these demands unscathed. According to a report published in The Wall Street Journal, Chief Executive Sundar Pichai informed staff in July that the company would be reducing the rate it would be hiring for the remainder of the year. The company then reported unsatisfactory results for the third quarter in November, citing a slowdown in the development of advertising sales.
As a result of businesses preparing for the possibility of a recession, revenue from advertising has decreased for a wide variety of enterprises this year.
Pichai stated this on the most recent earnings call for Alphabet. “The growth in our advertising sales was also impacted by lapping last year’s elevated growth levels and the adverse macro climate,” Pichai remarked.
In a letter sent to Alphabet a month ago, TCI Fund Management emphasized the importance of making significant reductions in operating expenses. As recently as the previous week, Alphabet revealed its intentions to combine the teams working on its Waze mapping service and those working on its Maps product to achieve the abovementioned goal.
Other tech companies, such as 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, has not ruled out the possibility of layoffs as part of their reorganization plans. Despite this, the reorganization in question did not
Alphabet Stock Price
Alphabet’s share (Alphabet stock) price has fallen by almost 37% this year, putting it on track to record its worst year since 2008. Barron’s asked the corporation for a response; however, the company did not immediately respond to the request.
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Author Valerie Remorosa 
