Alphabet Faces EU Probe, Tom Russo Cuts 1.88% Position, Gemini 3 Boost
Tom Russo trimmed Alphabet exposure by 1.88%, reflecting cautious sentiment after recent underperformance against peers. Meanwhile, the European Commission opened an investigation into the company's search ad auctions as shares gained 0.9% on the roll-out of Gemini 3 AI upgrades.
1. Tom Russo Cuts Exposure
Veteran investor Tom Russo reduced his Alphabet weighting by 1.88%, shifting capital toward cash and fixed income after the stock lagged peers in the past quarter.
2. EU Launches Antitrust Probe
The European Commission formally opened a fresh antitrust investigation into Alphabet’s search advertising auction mechanisms, examining whether auction rules unfairly benefit the company’s own ad units.
3. Stock Outperforms on Gemini 3 Upgrade
Alphabet shares rose roughly 0.9% as the company rolled out Gemini 3 AI enhancements, with analysts forecasting the technology will drive higher ad click-through rates and cloud service adoption.
4. AI Displacement Warning
Fundstrat’s Tom Lee cautioned that AI could erode the $450 billion software market and lead to job losses, posing a drag on ad and cloud spending if corporate budgets tighten.