NEW YORK—Alphabet shares closed at $364.39 Wednesday, a 5 percent decline that marked the company's worst single-day performance in over a year, following reports of a critical delay in its flagship AI product and a major executive departure.
The company confirmed it is pushing back the release of its Gemini 3.5 Pro model by several months. The delay came alongside reports that Jeff Dean, one of the most prominent AI researchers in the company's history, has left the firm.
Dean's exit deepened investor concern about Alphabet's AI strategy and its ability to retain top engineering talent. His departure followed other high-profile exits from the company's AI division.
Alphabet's stock had already fallen roughly 5 percent over the prior month. Wednesday's additional 5 percent drop extended that losing streak and reflected sustained investor skepticism about the company's AI execution.
Wedbush analysts said the current stock price represents an attractive entry point, arguing that Alphabet's Gemini AI initiatives are beginning to surpass its traditional search business in strategic importance.
The selloff arrives ahead of Alphabet's next earnings report, where investors will scrutinize guidance on the company's AI development timeline. Earlier revenue forecasts had projected a range of $180 billion to $190 billion; recent revisions place that figure at $205 billion, suggesting the underlying business remains strong despite the stock's reaction.
The Nasdaq Composite ended the day down 0.3 percent at 26,504. The S&P 500 edged up 0.1 percent to close at 7,743.
Other large technology stocks also fell. Microsoft dropped 0.9 percent to $488.29, Amazon declined 1.8 percent to $272.39 and Meta Platforms fell 0.5 percent to $585.05.
