Alphabet’s Heavy Investment Strategy Weighs on Investor Sentiment

Alphabet Inc. has reported a set of robust operational results, yet its share price performance has recently lagged. The tension stems not from its core business performance but from two persistent concerns unsettling the market: a massive planned capital expenditure program and renewed regulatory scrutiny from European authorities.

Adding to the company’s challenges is fresh regulatory pressure from the European Union. According to reports from Bloomberg and Reuters, the European Commission initiated a new antitrust investigation on February 12 focusing on Google’s practices in search advertising auctions. A commission document cited in the reports suggests a suspicion that the auction “clearing price” is being artificially inflated, potentially harming advertising customers. Read more...