Alphabet’s Worst Day Ever Leaves Google Search Valued Below Fossil Fuel Stocks, BofA Says

Indian IT stocks in green as Alphabet sees worst day ever; Infosys, Wipro among top gainers

Shares of Google’s parent company dropped by more than 12% on Thursday, losing $480 billion from its market capitalization, recording their worst day on record.

Alphabet just had its worst day as a public company. BofA now values Google search at a lower multiple than fossil fuel stocks

Search revenue missed forecasts and free cash flow went negative. Bank of America now values Google’s core search business at about 10 times earnings, against 18.7 for the S&P 500.

Alphabet’s worst day ever leaves Google search valued below fossil fuel stocks, BofA says

Google search, the business that paid for two decades of Alphabet’s ambitions, is now valued at about 10 times earnings, by Bank of America’s count. The S&P 500 trades at 18.7x forward earnings, according to FactSet. Energy, the market’s cheapest sector, trades at 13x. That math pummeled the stock Thursday. Alphabet’s Class A shares fell […]