Alphabet plunges 12% on weak earnings, dragging Nasdaq lower
Google parent Alphabet sank over 12 per cent after disappointing quarterly results, reigniting investor fears over AI spending and pulling the Nasdaq down 1.38 per cent. Other tech stocks were mixed, with Amazon falling 4 per cent and Meta rising nearly 2 per cent.
US stocks ended lower on Wednesday, with Google parent company Alphabet suffering a sharp sell-off after its quarterly results disappointed the market, reigniting investor concerns over massive artificial intelligence spending and dragging the technology-heavy Nasdaq down more than 1 per cent.
The Nasdaq Composite Index closed at 26,184 points, down 365 points, or 1.38 per cent. The Dow Jones Industrial Average fell 132 points, or 0.25 per cent, to 52,342 points. The S&P 500 declined 23 points, or 0.3 per cent, to 7,720 points.
Alphabet tumbled more than 12 per cent. Other major technology stocks moved in different directions: Meta rose nearly 2 per cent, while Amazon dropped more than 4 per cent. Amazon's fourth-quarter sales guidance, released after the closing bell, disappointed the market, sending its shares down a further 6 per cent in after-hours trading.
Heavy equipment manufacturer Caterpillar posted quarterly earnings that beat expectations, but kept its growth target unchanged, causing its stock to fall more than 9 per cent. Drugmaker Eli Lilly rose nearly 7 per cent, boosted by strong sales of weight-loss drugs, and raised its revenue forecast.
Software company ServiceNow released its quarterly results and saw its share price plunge nearly 27 per cent.