Alphabet Is Losing $215 Billion in Market Value

Google parent Alphabet Inc is down about 12% in April, scrapping off $215 billion in market value.

Alphabet’s woes were triggered
as jittery investors dump growth stocks amid fears of bigger and faster rate hikes thanks to rising inflation.

Yet, Alphabet can still boast of analysts’ enthusiasm, with zero sell and hold recommendations among the 54 covering the stock.

Wall Street forecasts that the internet giant will post faster revenue growth this year than most of the other FAANGs — Facebook, Apple Inc., Amazon, Netflix Inc. and Google — while the stock trades at a discount to them.

Sales are projected to climb 18%, a pace that might help calm the nerves of investors concerned that big tech is losing its growth bona fides.

That compares with Apple and Amazon which are projected to report growth of 8.3% and 14.6% respectively, according to data compiled by Bloomberg.

Analysts forecast revenue growth of 24% for the first three months of the year, along with an almost 20% increase in earnings per share.

Alphabet shares trade at less than 19 times estimated earnings, the cheapest level since March 2020. Its peers are pricier, with Apple at a multiple of 26, Microsoft Corp. at 27, and Amazon at 40. The Nasdaq 100 Index sits at about 23.