Alphabet Shares Plunge Over 9% on Earnings Miss, Sparking Tech Selloff Concerns

Alphabet shares plunged over 9% after missing earnings expectations, the second worst post-earnings drop in the company's history.

The selloff reflects concerns that tech valuations are too high after the sector's rally this year.

Disappointing results from Tesla last week also sparked a big selloff, showing investors are punishing any misses.

Despite the declines, valuations remain elevated compared to last year with the Nasdaq's P/E ratio still around 22.

With yields rising and growth uncertain, there's little room for earnings disappointments at current valuations.