Why Alphabet Stock Plunged 22% in the First Quarter
Alphabet's stock took a beating after its Q4 earnings report. Is the Google parent still a buy after that quick correction?
Shares of Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) fell 22.1% in the first quarter of 2025, according to data from S&P Global Market Intelligence. Google's parent company saw a disappointing fourth-quarter report and the same tariff-based issues as everyone else.
Let's start with the earnings debacle.
Alphabet's Q4 report was a mixed bag, with solid bottom-line earnings but revenues just below the consensus analyst target. The Google Cloud business struggled a bit, while YouTube and search-based sales came in above expectations. But the stock closed 7.3% lower the next day, mostly due to high expectations from this holiday-quarter report.
