As Google stocks depreciated in Wednesday’s Nasdaq trading sessions, the wealth of Google co-founders Larry Page and Sergey Brin plummeted.
Bloomberg Billionaire Index data reveal Larry Page, with a current value of $123 billion, lost approximately $5.34 billion in a day, while Sergey Brin lost $5.10 Billion in the same period, to reach $118 billion. Both men have collectively lost $10.44 billion.
According to Net Market Share, the majority of each billionaire’s fortune comes from their stakes in Alphabet, the parent company of Google, the world’s largest search engine.
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According to July 2021 company filings, both billionaires own 6% each of Alphabet Stocks
Data compiled by Bloomberg indicates that Alphabet and Google have sold shares worth about $9 billion each since Google’s 2004 initial public offering.
Following minutes from the latest US Federal Reserve meeting, Alphabet shares (parent company of Google) were down sharply on Wednesday. The minutes suggested the central bank may raise interest rates more quickly than expected.
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Alphabet stocks were down nearly 5%, and the Nasdaq fell 3.3%, its biggest daily drop in over a year as fading concerns about the Omicron coronavirus variant were amplified by rising interest rates, lowering the appeal of the tech sector that has benefited during the pandemic.
High-growth tech stocks such as Google are especially susceptible to rising interest rates and policy tightening, which can curb future earnings potential and knock the sector’s high valuations.
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According to the minutes of the December Fed meeting, “participants generally agreed that, given their individual outlooks for the economy, the labour market, and inflation, an increase in the federal funds rate may turn out to be warranted earlier than they had anticipated”
In addition, it appears that “almost all” participants on the Federal Open Market Committee believed the central bank should allow its balance sheet to shrink once its main policy rate has been raised.