Alphabet Tumbles 4.5% on Report Gemini 3.5 Pro AI Model Delayed for Months
GOOG sits 97% above its 52-week low of $181.5.
Summary
Alphabet shares dropped 4.5% after Bloomberg reported that the Gemini 3.5 Pro AI model is delayed for months and failing to meet internal expectations. This follows a securities fraud investigation announced earlier over AI model delays, adding legal risk to the product setback. The sell-off dragged the Dow Jones lower and occurred amid a broader chip stock rout, with Micron down 13% over two sessions and memory names off 20-22%. The delay raises concerns about Alphabet's competitive position in AI against rivals, especially given its massive $700B capex plan and recent $80B equity offering. Netflix also disappointed after hours, falling 9% on a revenue miss and slowing growth outlook.
At the time of this announcement, GOOG was trading at $356.70 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.3T. The 52-week trading range was $181.50 to $404.47. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: CNBC TV18.