Home Market Amazon and Alphabet’s $82 billion rout echoes Facebook loss

Amazon and Alphabet’s $82 billion rout echoes Facebook loss


By Ryan Vlastelica

Amazon.com Inc. and Alphabet Inc. tumbled in the wake of disappointing revenue growth, and it cost investors big money.

The losses wiped out $82 billion in stock-market value, a milestone that brings back memories of Facebook Inc.s second-quarter debacle. Amazon fell 7.8 per cent on Friday, erasing about $66 billion in market value. It was its biggest one-day market-cap drop ever, and one of the five biggest for any U.S. stock. Google-parent Alphabets 1.8 per cent decline cut its market capitalization by almost $16 billion.

While Fridays losses reaffirm Amazons and Alphabets membership in the dubious history book of market-cap collapses, theyre nowhere near taking the individual title. That record belongs to Facebook, which in July became the first U.S. stock in history to shed $100 billion in value in a single session after reporting disappointing quarterly sales and user growth. The stock sank 19 per cent over the course of a single trading session, carving about $120 billion off its value.

Amazons market cap was $803.3 billion as of Fridays close. Microsoft Corp. ($821 billion) reclaimed the title of worlds second most valuable company, behind Apple Inc. ($1.04 trillion). Fourth-ranked Alphabet now has a value of $749.1 billion.

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