{"id":113377,"date":"2026-07-21T14:14:13","date_gmt":"2026-07-21T14:14:13","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/113377\/"},"modified":"2026-07-21T14:14:13","modified_gmt":"2026-07-21T14:14:13","slug":"alphabets-gemini-delay-spending-worries-loom-over-earnings","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/113377\/","title":{"rendered":"Alphabet’s Gemini delay, spending worries loom over earnings"},"content":{"rendered":"

Alphabet faces heightened scrutiny from investors as \u200ba delay in the launch of \u200ba model key to its AI ambitions adds to worries over \u200bthe payoff from massive data-center spending, months after raising expectations with a blockbuster quarter for cloud sales.<\/p>\n

The Google parent – set to report second-quarter results on Wednesday – has delayed from June the launch of its next \u200cflagship model, Gemini \u20603.5 \u2060Pro, built especially to catch up with rivals in the lucrative market for AI coding tools<\/a> and agentic AI tasks.<\/p>\n

The setback has raised concerns as Chinese open-source models increasingly challenge top U.S. labs for customers \u200bamid growing worries about steep AI bills that have also fanned fears that Big Tech could be over-building capacity.<\/p>\n

“While Google is missing the boat on AI coding and that’s \u200ba very real growing concern … Google’s strategy is all about \u2060the ecosystem,” \u200csaid Dave Wagner, portfolio manager at Aptus Capital Advisors.<\/p>\n

Alphabet increased its 2026 capital expenditure guidance<\/a> to between $180 billion and $190 billion in April and has announced \u2060plans to raise about $85 billion in equity offerings, including an investment from Berkshire Hathaway.<\/p>\n

Alphabet shares are down about 9% since late \u200bApril – when it posted a 63% jump in cloud sales – lagging other so-called “Magnificent Seven” stocks during the period.<\/p>\n

The company has also lost high-profile employees, including Gemini co-lead Noam Shazeer and Nobel laureate John Jumper, a key Google DeepMind<\/a> executive, to rivals.<\/p>\n

Analysts have said Google’s advantage in the AI race lies in its ownership of a large consumer distribution \u200cnetwork, on top of its AI models, cloud infrastructure and custom silicon.<\/p>\n

Overall, Alphabet shares remain nearly 13% higher for the year, making it the \u200bsecond-best performer among \u200bthe Mag 7 group.<\/p>\n

Analysts \u2060expect the company’s second-quarter revenue growth to ease only slightly from the first three months of 2026, as the cloud business drives results.<\/p>\n

Alphabet is expected to post a 21.3% rise \u200bin revenue for the April-June period to $116.93 billion, according to data compiled by LSEG. Cloud sales are estimated to grow at a similar 64% pace, while ad revenue is forecast to expand at a slower 13.7%.<\/p>\n

The cloud business has benefited from growing deals for Google’s custom AI chip business, including multi-billion-dollar agreements with Meta Platforms and Anthropic.<\/p>\n","protected":false},"excerpt":{"rendered":"Alphabet faces heightened scrutiny from investors as \u200ba delay in the launch of \u200ba model key to its…\n","protected":false},"author":2,"featured_media":113378,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[5881,58116,58119,58118,5044,58117,132,7543],"class_list":["post-113377","post","type-post","status-publish","format-standard","has-post-thumbnail","category-google","tag-ai-coding-tools","tag-alphabet-earnings-report","tag-capital-expenditure-guidance","tag-cloud-sales-growth","tag-deepmind","tag-gemini-ai-model-delay","tag-google","tag-google-deepmind"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/113377","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=113377"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/113377\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/113378"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=113377"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=113377"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=113377"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}