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.
If you look at their historical price chart, what you call a “minor fluctuation” 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’t 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 roughly another 50% to return to historical trend.
They revealed that they make less money on the AI Overview than traditional ads. Also they, supposedly, have no strategy to monetize AI use from their customers.
Okay, unlike most drummed up bullshit articles that make big noise over minor fluctuations, this ain’t nothing.
Anyone know what happened?
If you look at their historical price chart, what you call a “minor fluctuation” 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’t 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 roughly another 50% to return to historical trend.
A 12% fluctuation is considered a pretty big deal for a company of this size. Usually the large companies are considered way more stable.
If it were a medium sized company no one would talk about this fluctuation outside of investing circles
They revealed that they make less money on the AI Overview than traditional ads. Also they, supposedly, have no strategy to monetize AI use from their customers.