Alphabet Slides 7% Despite Gemini Upgrades as EU Trains Sights on Cloud Rivals
28.06.2026 - 00:40:56 | boerse-global.de
Alphabet’s stock endured its worst week in months, shedding 7.15% to close at €296.70 on Friday, even as the company rolled out a fresh batch of artificial-intelligence tools and the European Commission singled out its two biggest cloud competitors for tougher regulation. The contrasting signals left investors weighing near-term technical weakness against a structural advantage that could reshape the cloud market.
The European Commission has informed Amazon and Microsoft that it intends to designate Amazon Web Services and Microsoft Azure as gatekeepers under the Digital Markets Act, citing the central role of cloud services in the European economy and AI development. Google Cloud, the number-three player, was conspicuously absent from the preliminary position. Microsoft had argued that regulators were underestimating Google’s growing market share, but Brussels decided to apply the heaviest obligations to the two dominant providers first. For Alphabet, the reprieve is no free pass — the company still faces DMA scrutiny in search, advertising and AI services — but the immediate regulatory burden now falls on its rivals.
At the product level, Google Cloud unveiled a series of infrastructure improvements designed to keep developers inside its ecosystem. The open-source Run:ai Model Streamer now routes data directly into processor memory, slashing the time needed to load large language models: a 480-billion-parameter model loads more than twice as fast while requiring half the peak memory. Separately, Alphabet launched a monitoring tool based on OpenTelemetry that hunts for hidden errors in large-scale machine-learning processes on its TPU chips. And on the software front, Gemini 3.5 Flash gained the ability to control desktop applications directly. The model analyses on-screen content and executes actions in the browser or operating system, targeting enterprise automation tasks such as software testing — with safeguards that require user confirmation for sensitive actions.
Should investors sell immediately? Or is it worth buying Alphabet?
None of that progress lifted the shares this week. The stock has now lost more than 11% over the past 30 days and sits roughly 15% below its 52-week high of €350.75 reached in May. The technical picture shows a stock that has broken decisively below its 50-day moving average of €318.46, with the relative-strength index at 34.3, deep in oversold territory. The 100-day line at €291.33 offers the nearest support; a clean break there would open the door to the 200-day moving average near €270.73.
The weakness partly reflects talent concerns. Reports that several senior AI researchers are preparing to leave for Anthropic added to the narrative of a brain drain in Google’s generative-AI unit, making the battle for top engineers an independent risk factor for the stock.
Yet the company’s own investor presentation last June made clear why cloud regulation matters for Alphabet’s long-term story. First-quarter cloud revenue jumped 63% year over year, the cloud order backlog doubled sequentially to more than $460 billion, and three-quarters of all cloud customers now use Google’s AI products. Those figures put Google Cloud at the heart of Alphabet’s AI investment thesis, and the EU’s decision to target AWS and Azure first could accelerate enterprise adoption of Google’s platform if interoperability rules make it easier to switch.
For now, the market is demanding concrete evidence that the infrastructure spending will translate into sustainable profits. The 100-day moving average is the line in the sand: if it holds, a recovery toward the 50-day line becomes the next logical target. If it fails, the selling could deepen before the longer-term uptrend reasserts itself.
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