Alphabet Inc. Class A shares fell 3.21% due to stalled data center financing and European regulatory challenges.

Alphabet Inc. Class A shares fell 3.213% in pre-market trading on December 18, 2025, as investors reacted to news of stalled financing for a major data center project and ongoing regulatory challenges in Europe.

The decline was attributed to reports that a key partner refused to back a $10 billion data center initiative in Michigan, raising concerns about Alphabet’s capital expenditures and AI infrastructure spending. This development, coupled with broader market skepticism toward tech stocks, exacerbated the sell-off.

Regulatory pressures also weighed on sentiment, as the European Commission launched a new investigation into whether Google improperly used third-party content for its AI projects. This follows recent antitrust scrutiny over alleged violations of the Digital Markets Act, which could result in penalties up to 10% of global annual turnover.

Despite the drop, Alphabet’s stock remains near its 52-week high. Regulatory risks and capital allocation decisions will be critical for near-term performance in the evolving tech sector.