Alphabet (GOOGL) fells 3.21% as stalled data center funding and regulatory scrutiny weigh

Alphabet Inc. Class A (GOOGL) fell 3.213% in pre-market trading on December 18, 2025, signaling renewed investor caution amid mounting challenges for the tech giant. The sharp decline followed reports of stalled financing for a major data center project and escalating regulatory scrutiny.

The sell-off was primarily triggered by news that a key partner refused to fund a $10 billion data center initiative in Michigan, casting doubt on Alphabet’s AI infrastructure expansion plans.

This development weighed on broader market sentiment for AI-related stocks, with the communication services and technology sectors ranking as the day’s worst performers. Analysts noted that the move reflects growing concerns over the sector’s high capital expenditures and uncertain returns.

Regulatory pressures further compounded the sell-off. The European Commission is investigating whether Google violated antitrust rules by favoring its own services, potentially leading to fines under the Digital Markets Act. Additionally, a separate probe into Google’s use of third-party content for AI training added to investor unease. These risks come as the company faces a broader market retreat from tech stocks, fueled by Oracle’s recent cloud revenue miss and heightened scrutiny of AI infrastructure costs.

Despite the decline, Alphabet’s shares remain near their 52-week high, trading close to $297.36. The stock has surged 57% year-to-date, reflecting its dominant position in AI and cloud computing. However, the recent volatility underscores the sector’s sensitivity to both financing hurdles and regulatory shifts, with investors closely monitoring the company’s ability to navigate these challenges while maintaining growth momentum.