Until recently, Alphabet could please the bulls with reports of high, above-expected sales and income levels, however, it didn’t last long.
Alphabet's share price stopped pleasing investors Tuesday night, proving that the $5.5 trillion sell-off in the tech sector is far from over.
Saxo Capital Markets strategist Jessica Amir said that because the economy is at a tipping point, the pressure will be on asset classes with high risks, such as technology. On the topic of the tipping point, she noted that a strong dollar would hit corporate earnings, and demand would fall.
According to Bloomberg data, Alphabet is experiencing such hard times for the first time in seven years, the company has been disappointing investors with earnings per share figures for the third quarter in a row.
Moreover, the level of inflation is preventing Alphabet from achieving the desired results in digital marketing. Because digital marketing doesn't work so well, sales revenue in the company's key areas is also lower.