Alphabet Stock Falls Over 6% in Two Days as Gemini Delays and Kimi K3 Gains Weigh

GOOGL-2.17%
According to Barron's, Alphabet (GOOGL) stock fell 2.17% on Friday (July 17), capping a two-day decline exceeding 6% as investors reacted to AI execution concerns and intensifying competition. The declines reflect two key pressures: delays in rolling out Gemini 3.5 Pro—originally planned for June—and the emergence of Moonshot AI's Kimi K3 model, which independent benchmark tests showed surpasses all of Google's current models in reasoning ability. Zacks Investment Management's chief market strategist Brian Mulberry noted that while K3's launch demonstrates the market's rapid innovation pace, its high token costs may limit adoption growth. Alphabet is scheduled to report earnings on Wednesday (July 22); analysts warn that any increase in AI infrastructure spending guidance without corresponding performance evidence could trigger negative market reaction.
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