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 12.6% to $283.82, their worst day since they began trading in 2004. The decline wiped out about $482 billion in market value. Previously, Alphabet's worst day was in March 2020 when the stock dropped 11.6%. The trigger was the search business—the same juggernaut that turned Google into a verb. Search and other revenue grew 12% in the third quarter to $63.35 billion. Analysts expected 15%.
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