Alphabet Inc. loses its place in the prestigious trillion-dollar-club amidst the Coronavirus driven sell-off

The
Coronavirus outbreak in China is starting to sabotage the global tech giants’
financial performances. In a recent development, Google’s parent organization,
Alphabet Inc. was reported to have exited the prestigious trillion-dollar club
on Monday. According to the experts, the sell-off in Alphabet’s stock that
pushed its value below the one trillion-dollar mark stemmed from the rapid
spread of the virus outside China.

Alphabet
Inc. Currently Has A Market Capitalization of $976.39 Billion

Alphabet
Inc. lost around 4% in the stock market on Monday afternoon. At the time of
writing, it is exchanging hands at $1,419.86 per share that translates to a
market capitalization of $976.39 billion. Alphabet, however, is still trading around
4% higher than the $1,368 level at which it started the new year. Google’s
performance in the stock market in 2019, on the other hand, was largely upbeat
with the stock climbing from around $1,050 per share to $1,368 that marks an
annual gain of around 30% last year.

With multiple other countries reporting rising cases of Coronavirus, it is now starting to heavily weigh on the financial markets and the global economic scenario at large. In extended hours trading on Monday, the Dow Jones index was also seen trading 2.9% down after losing 830 points in a day. A greater 3.4% decline was noted in Nasdaq that is known to be a tech-heavy index. Alphabet is also listed on Nasdaq. Lastly, the benchmark S&P 500 index traded 2.8% down on Monday.

Effect
Of Coronavirus On European Stock Indices

The
effect of Coronavirus was not confined to the U.S indices alone. The UK’s FTSE
100 also lost 3.6% on Monday while a 4% decline in Germany’s Dax and France’s
CAC 40 was also reported. Google had also dropped briefly out of the trillion-dollar
club followings its Q4
earnings report that missed the analysts’ estimate for revenue and saw a 6%
decline in the stock market at the start of February. The company, however, had
quickly gained back to keep its place in the prestigious club.

The first time that Google’s market capitalization crossed the $1 trillion mark was in January 2020. The company was launched in 1998 with its initial public offering dating back to the year 2004. Microsoft, Apple, and Amazon are the only remaining U.S companies that are currently in the trillion-dollar club. While Apple and Microsoft are significantly above the $1 trillion milestone with a $1.3 trillion market value each, Amazon continues to linger right around the $1 trillion mark.