It pays to avoid Congressional testimony

Google’s secret stock-preserving strategy.
Google’s secret stock-preserving strategy.
Image: AP Photo/Jose Luis Magana
We may earn a commission from links on this page.

While members of the US Congress were disappointed that Google didn’t send CEO Sundar Pichai to testify yesterday (Sept. 5) about manipulation of internet social platforms, investors didn’t seem to mind his absence.

Google’s stock fared better than either of the companies that showed up, Facebook and Twitter. From the close of trading on Sept. 4 until 1pm ET on Sept. 6, Twitter’s stock dropped 11.5%, and Facebook’s fell 6%, while Google’s sagged just 3.7%.

It’s been a bad week for US tech stocks regardless of the hearings, with Apple and Microsoft shares seeing similar losses of 2.5% and 3.4%, respectively.

But in the face of double-digit dips seen by Twitter, maybe Google has found the secret to testifying before US Congress: Never try, never fail.