Asian stock markets close lower with techs under pressure after Alphabet's fall
Lower-than-expected revenue brought down Google's parent company and led investors to reduce exposure to technology, according to Money Times.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM MONEY TIMES · 2 MIN
Asian stock markets closed mostly lower on Friday (30), with technology shares at the center of the movement. According to the Money Times, the region's markets followed Wall Street's losses and felt the effect of the fall of Alphabet, Google's parent company, the day before.
The cause cited was the company's balance sheet. Alphabet's revenue was below expectations, and investors reduced their exposure to technology stocks. On Thursday (29), the company lost around US$500 billion in market value.
The point that caught the most attention was the slowdown in Google's search revenue in the third quarter, which lost momentum. According to the publication, the reason lies in the lower monetization potential of searches with artificial intelligence, a concern that weighs on the company's main business.
The case goes beyond a single company. Alphabet is one of the main hyperscalers, cloud providers supporting the artificial intelligence boom. When one of these pillars disappoints, the market reassesses how much it is willing to pay for the rest of the sector.
What changes for the investor
For those who follow the stock market, Nasdaq, interest rates and the dollar, the episode shows how technology stocks can come under severe pressure when a result frustrates high expectations. The immediate effect tends to be one of caution and greater selectivity, with investors more attentive to the ability to transform artificial intelligence into revenue. The next test for the sector will come in the balance sheets that are yet to be released.
Automatically translated from Portuguese.
