Alphabet Stock Tumbles on Disappointing Cloud Growth

Alphabet stock dropped nearly 10% on Wednesday after reporting slower than expected cloud growth.

Google's cloud revenue was $8.41 billion, below estimates of $8.64 billion.

Alphabet lost as much as $173 billion in market capitalization at its low point on Wednesday.

Analyst Scott Devitt said Alphabet's cloud weakness dragged the stock down but shouldn't detract long-term.

In contrast, Microsoft stock rose as its cloud unit saw strong sales growth that topped estimates.