Alphabet Stock Drops as Gemini Delays and EU Orders Hit Hard

Alphabet stock saw a sharp decline of over 4 percent this week as a combination of product delays and government pressure overshadowed a recent endorsement from Warren Buffett. Shares dropped from recent highs near 370 dollars to around 353 dollars as investors reacted to the cooling momentum. The company is currently struggling with delays for its Gemini 3.5 Pro model, which was originally expected to launch in June but remains in development while rivals gain ground in enterprise benchmarks.

The pressure is compounding due to heavy capital spending. Alphabet is on track to spend up to 190 billion dollars this year on AI infrastructure, a move that forced the company to pivot its share buyback strategy and secure an 80 billion dollar equity raise. While Berkshire Hathaway anchored this raise, Buffett himself noted that the massive costs involved in the AI race are significant and require caution.

Adding to the frustration, the European Commission recently ordered Google to grant rivals access to Android data and search information to comply with the Digital Markets Act. Google has pushed back against these requirements, arguing they pose risks to user privacy and trade secrets. With additional fines potentially on the horizon and antitrust scrutiny heating up in the United States, all eyes are now on the company's July 22 earnings report. Investors will be looking specifically for growth in Google Cloud to prove that the massive AI spending is actually paying off.