The firm’s investigation follows two distinct market dips in July. On July 16, Bloomberg reported that Google’s Gemini 3.5 Pro project was significantly behind schedule, with recent training data updates failing to yield the anticipated improvements. Alphabet shares dropped 4.4% that day, closing at $353.81.

Financial disclosures on July 22 further unsettled investors. Alphabet announced a massive increase in projected 2026 capital expenditures, now estimated between $195 billion and $205 billion, alongside a negative free cash flow of $5.9 billion for the quarter. The company also warned of margin pressure resulting from a pivot toward third-party capacity to mitigate supply constraints. Following these disclosures, the stock price slid an additional 6.89%, closing at $318.34 on July 23. Investors are now being urged to contact Danielle Peyton at Pomerantz LLP to discuss potential legal recourse.