Alphabet (GOOGL) Stock Drops 2% Amid AI Development Delays

Alphabet (GOOGL) stock fell 2% by 10:15 a.m. ET on Friday after a report indicated its Gemini 3.5 Pro AI model is months behind schedule. The company is reportedly risking its position in the competitive AI market against rivals OpenAI and Anthropic. Analysts project Alphabet's capital investments will reach approximately $187 billion this year, which would consume most of the expected $212 billion from cash operations, limiting its free cash flow to around $25 billion. This situation may raise concerns among investors regarding future performance and market confidence in Alphabet's AI capabilities.