Alphabet shares plummet 3.14% as stalled Michigan data center financing weighs on sentiment

Alphabet Inc. Class C shares plummeted 3.1424% in pre-market trading on Dec. 18, 2025, as concerns over stalled financing for a $10 billion data center in Michigan weighed on sentiment. The selloff mirrored broader weakness in AI-related tech stocks, with Oracle, Nvidia, and Broadcom also under pressure following reports of a major partner withdrawing support for the project. Market participants interpreted the decline as a reaction to regulatory and macroeconomic uncertainties rather than immediate operational risks to Alphabet’s core business.

Regulatory scrutiny continued to loom, with ongoing EU investigations into Google’s alleged misuse of publishers’ content for AI training and potential antitrust violations. These developments compounded investor caution, even as Alphabet’s advertising revenue and AI roadmap remained intact. Analysts noted the drop reflected a recalibration of growth stock valuations amid shifting inflation expectations and Federal Reserve policy signals, rather than a fundamental shift in the company’s long-term trajectory.

Despite the pre-market decline, Alphabet’s year-to-date performance remains robust, with shares up 57% and trading near 52-week highs. The selloff highlighted persistent volatility in the tech sector, driven by overvaluation concerns and macroeconomic divergences. Investors will likely monitor the company’s ability to navigate regulatory challenges and maintain execution momentum in AI and cloud services as key determinants of near-term direction.

Investment professionals have begun to question whether the broader tech sector is experiencing a correction that could extend beyond Alphabet, especially with the recent pullback in growth-focused stocks. The market reaction seems to reflect a mix of near-term profit-taking and long-term skepticism, despite Alphabet’s continued AI development and advertising dominance. These dynamics suggest that while Alphabet’s fundamentals remain strong, sentiment is being driven by external macroeconomic forces and global regulatory developments.

Looking ahead, investors may seek clarity from Alphabet’s upcoming quarterly earnings report, as well as from the Federal Reserve’s next policy decision. If Alphabet continues to outperform despite sector-wide weakness, it could signal resilience in its core businesses and investor confidence in its long-term AI and cloud strategies. Conversely, a lack of earnings surprises or regulatory setbacks may amplify near-term volatility and prolong the correction.