Alphabet's Cloud Business Gets EU Tailwind While Gemini 3.5 Pro Slips to July

Alphabet shares near €301, down 14% from May high, pressured by Gemini 3.5 Pro delay. Cloud regulatory relief in EU and strong earnings offer support. Oversold RSI hints at buying opportunity ahead of July rollout.

Alphabet shares are trading near 301 euros, roughly 14 percent below the May high of 350.75 euros and down almost 10 percent over the past 30 days. The sell-off comes despite a pair of powerful countercurrents: a regulatory windfall in cloud computing and a still-robust earnings picture.

The most immediate drag on sentiment is the delayed launch of Gemini 3.5 Pro. CEO Sundar Pichai had targeted a June release, but the company has pushed it back to July to incorporate tester feedback. The postponement lands at an awkward moment, with rivals Anthropic and OpenAI accelerating their own releases and poaching technical staff from Google's DeepMind unit. DeepMind chief Demis Hassabis has downplayed the departures, insisting Alphabet's research breadth keeps it attractive to AI talent, but the revolving door remains a concern.

Yet in the cloud arena, Alphabet caught a break. The European Commission is zeroing in on Amazon Web Services and Microsoft Azure as potential "gatekeepers" under the Digital Markets Act, which would subject them to strict compliance obligations. Alphabet's Google Cloud does not appear on that preliminary list. The regulatory relief follows a seven-month probe and, if confirmed, would give Google a cost and speed advantage over its two largest rivals in the EU market.

That advantage is already translating into numbers. Google Cloud's first-quarter revenue jumped 63 percent to exactly 20 billion euros (20 billion US dollars? The article says 20 Milliarden US-Dollar, so 20 billion USD. We'll use USD for consistency with primary article's USD figures. Actually primary uses USD for revenue and EPS. So we'll use USD.) — note: primary article uses dollars, secondary uses dollars for cloud revenue. So use dollars. Cloud operating profit tripled year over year to $6.6 billion, underscoring that the heavy spending on AI infrastructure is paying off. Alphabet's total first-quarter revenue reached $109.9 billion, up 21.8 percent, with earnings per share of $5.11 comfortably above expectations.

Institutional investors have taken note. Berkshire Hathaway plowed $10 billion into Alphabet, and Clark Asset Management boosted its position by 17.3 percent in the first quarter. A further structural catalyst looms: Alphabet is set to join the Dow Jones Industrial Average at the end of June 2026, replacing Verizon. Index-tracking funds and pension portfolios will be forced buyers, creating a predictable demand stream.

Technically, the stock is approaching oversold territory. The relative strength index stands at 37.5, not far from the 30 threshold that typically signals a buying opportunity. While shares have slipped below the 50-day moving average of 318.23 euros, they remain well above the 200-day average of 270.30 euros, suggesting the long-term trend is intact.

The July rollout of Gemini 3.5 Pro now becomes the next major inflection point. If the model delivers strong benchmark results, it could quickly refocus attention on Alphabet's AI capabilities and its cloud momentum — and help the stock claw back its recent losses.