The sharp drop is the latest sign of anxiety creeping through Wall Street over how long it will take AI companies to see returns on massive investments.
Edit: My bad, misread what the previous poster wrote. The explanation is still valid, though.
If you look at their historical price chart, what you call a “minor fluctuation” this is one if not the largest price changes in both absolute and relative terms of at least the last 5 years.
Also the trading volume was the largest since 2016.
Basically you’re looking at an elephant and calling it a mouse.
It makes sense that a 12.6% stock price movement is a big thing for a company with that market cap and liquidity, since it has way less volatility that smaller companies because it takes way more money to move its price a mere 1%, plus the high liquidity means that the trading stack is far deeper and it’s way harder for there to be a crunch because you can always find people willing to buy if the price falls enough (or, on the other direction, willing to sell if the price rises enough).
This ain’t Joe’s Corner Shop Inc.
That said, the price is still above a year ago, though by a mere 0.83%, so whilst this is a big price movement, it’s far from having unwound the AI bubble stock price rise for Google - looking at its full historical price chart and roughly projecting the historical trend to present day, Alphabet stock price would have to fall around 50% more to return to historical trend and that’s assuming that without the AI bubble it would have continued to go up as before rather than reduce to the typical growth rates of mature companies.
I didn’t call it a minor fluctuation - I called it the opposite. By minor fluctuations I was referring to articles that say “Google lost X billions from its market cap”, then you look inside and you find a 1% move. 12% seems very significant, and thanks for your explanation of why that’s significant.
Edit: My bad, misread what the previous poster wrote. The explanation is still valid, though.
If you look at their historical price chart,
what you call a “minor fluctuation”this is one if not the largest price changes in both absolute and relative terms of at least the last 5 years.Also the trading volume was the largest since 2016.
Basically you’re looking at an elephant and calling it a mouse.It makes sense that a 12.6% stock price movement is a big thing for a company with that market cap and liquidity, since it has way less volatility that smaller companies because it takes way more money to move its price a mere 1%, plus the high liquidity means that the trading stack is far deeper and it’s way harder for there to be a crunch because you can always find people willing to buy if the price falls enough (or, on the other direction, willing to sell if the price rises enough).
This ain’t Joe’s Corner Shop Inc.
That said, the price is still above a year ago, though by a mere 0.83%, so whilst this is a big price movement, it’s far from having unwound the AI bubble stock price rise for Google - looking at its full historical price chart and roughly projecting the historical trend to present day, Alphabet stock price would have to fall around 50% more to return to historical trend and that’s assuming that without the AI bubble it would have continued to go up as before rather than reduce to the typical growth rates of mature companies.
I didn’t call it a minor fluctuation - I called it the opposite. By minor fluctuations I was referring to articles that say “Google lost X billions from its market cap”, then you look inside and you find a 1% move. 12% seems very significant, and thanks for your explanation of why that’s significant.
You’re right, I misread what you wrote.
Turns out we’re in full agreement!