Why Alphabet Stock Crashed Wednesday Morning
Shares of Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) turned sharply lower on Wednesday, falling as much as 9.1%. As of 10:45 a.m. ET, the stock was still down 7.5%.
The catalyst that sent the tech giant lower was its third-quarter earnings report, which suggested the economy is worse than some feared.
Alphabet generated revenue of $69 billion, up 6% year over year (up 11% in constant currency), as foreign currency headwinds ate into its results. Its operating margin continued the decline that began earlier this year, falling to 25% compared to 32% in the prior-year quarter. The bottom line showed the strain of the beleaguered economy as diluted earnings per share (EPS) of $1.06 slumped 24%.
Source Fool.com
